What Is the Validity of IEC Code and Does It Need Renewal?

If you are involved in importing or exporting goods or services in India, obtaining an IEC Code (Import Export Code) is mandatory. Issued by the Directorate General of Foreign Trade (DGFT), the IEC Code acts as a primary identification number for businesses engaged in international trade.

One of the most common questions asked by exporters and importers is: What is the validity of IEC Code and does it need renewal? In this blog, we will explain the validity of IEC, renewal requirements, mandatory annual updates, penalties for non-compliance, and how to keep your IEC active.

What Is IEC Code?

The Import Export Code (IEC) is a 10-digit unique identification number issued by DGFT under the Foreign Trade (Development & Regulation) Act, 1992. No person or business can legally import or export goods or services from India without a valid IEC, except in a few exempted cases.

The IEC is required for:

• Importing goods into India
• Exporting goods or services from India
• Receiving foreign currency payments
• Clearing shipments through customs
• Availing export incentives and benefits

What Is the Validity of IEC Code?

An IEC Code is valid for a lifetime. Once issued, the IEC does not expire automatically and does not require traditional renewal like other registrations such as GST or FSSAI.

This means:

• There is no expiry date on the IEC certificate
• You do not need to reapply for IEC once it is issued
• The same IEC can be used throughout the business’s lifetime

However, lifetime validity does not mean zero compliance. DGFT has introduced mandatory requirements to keep the IEC active.

Does IEC Code Need Renewal?

Technically, IEC Code does not require renewal, but annual updating is mandatory.

As per DGFT regulations, every IEC holder must confirm or update their IEC details every year between April 1st and June 30th on the DGFT portal.

This process is known as IEC Annual Update.

Even if there are no changes in your business details, you must still log in and confirm the information.

What Happens If IEC Is Not Updated Annually?

If you fail to update or confirm your IEC details within the prescribed time:

• Your IEC may be deactivated by DGFT
• You will not be able to import or export
• Customs clearance may be blocked
• Export incentives and benefits may be withheld

A deactivated IEC can be reactivated later, but it causes unnecessary delays and compliance issues.

What Details Need to Be Updated in IEC?

During the annual IEC update, you need to verify or update:

• Business name and address
• PAN details
• Bank account details
• Mobile number and email ID
• Nature of business activity

If there are any changes in ownership, address, or bank details during the year, they should be updated immediately instead of waiting for the annual window.

How to Update or Renew IEC Code Online?

Although IEC does not require renewal, the annual update process is done online. The steps are:

Step 1: Log in to DGFT Portal

Visit the DGFT official portal and log in using your registered credentials.

Step 2: Select IEC Update Option

Go to “Manage IEC” and choose the option to update or confirm IEC details.

Step 3: Verify Business Details

Review all the details displayed and make necessary changes, if any.

Step 4: Submit and E-sign

Submit the update using Aadhaar OTP or digital signature.

Once submitted, your IEC status will remain active for the year.

Is There Any Fee for IEC Renewal or Update?

• IEC renewal fee: Not applicable (since no renewal is required)
• Annual update fee: Usually nil

However, professional charges may apply if you take expert assistance.

Validity of IEC for Different Business Types

The IEC Code lifetime validity applies to:

• Proprietorship firms
• Partnership firms
• LLPs
• Private Limited Companies
• Public Limited Companies

The IEC remains valid even if your business is temporarily inactive, provided annual updates are done.

Can IEC Be Cancelled?

Yes, IEC can be cancelled or surrendered in the following cases:

• Business closure
• Voluntary surrender by the applicant
• Misuse or violation of foreign trade laws
• Non-compliance with DGFT regulations

Cancellation does not happen automatically and requires proper application.

Common Misconceptions About IEC Validity

• IEC expires every year:  Incorrect
• IEC renewal fee must be paid annually:  Incorrect
• IEC can be used without updates:  Incorrect
• One IEC per PAN:  Correct

Why It Is Important to Keep IEC Active

An active IEC ensures:

• Smooth import-export operations
• Faster customs clearance
• Eligibility for export benefits
• Compliance with DGFT regulations

Inactive or deactivated IEC can disrupt international trade operations.

How LegalInfinix Can Help

Managing IEC compliance may seem simple, but missing annual updates can cause serious business interruptions. LegalInfinix provides:

• IEC registration services
• Annual IEC update assistance
• IEC modification and correction support
• DGFT compliance advisory

To summarise, the IEC Code has lifetime validity and does not require renewal, but annual confirmation or updation is mandatory to keep it active. Businesses must ensure timely updates on the DGFT portal to avoid deactivation and trade disruptions.

Need help with IEC registration or annual update? Contact LegalInfinix today for hassle-free IEC compliance.