What is the Validity of IEC Code? Does it Expire?

When starting a business that involves importing or exporting goods or services in India, one of the essential legal steps is to obtain an Import Export Code, commonly known as IEC. This 10-digit code is issued by the Directorate General of Foreign Trade (DGFT) and acts as a unique identifier for traders in international commerce.

Many first-time applicants often wonder — what is the validity of an IEC code? Once issued, does it expire? Is there any renewal process involved?

In this blog, we will explore the complete details regarding the validity of the IEC code, the requirement for updates, and what businesses must do to ensure their IEC remains active and compliant.

What is an IEC Code?

IEC stands for Import Export Code, a registration number required by any person or business that intends to carry out import or export activities from India. It is a prerequisite for customs clearance and for receiving or making international payments through banks.

Whether you’re exporting handmade crafts through e-commerce, importing machinery for your factory, or offering consulting services to international clients, you need IEC Registration to comply with Indian foreign trade regulations.

The application process for IEC is fully online through the DGFT portal and requires only basic documents like PAN, address proof, bank details, and Aadhaar authentication or a digital signature.

Is IEC Valid for a Lifetime?

Traditionally, once an IEC code was issued, it remained valid for the lifetime of the entity or individual and did not require any renewal. There was no expiration date or need for any periodic update unless the holder wanted to make modifications such as changing address, bank account details, or business name.

However, this changed with a notification issued by the DGFT in July 2021, which introduced a new compliance requirement. While the IEC code itself still remains valid for a lifetime, holders must now update or confirm their IEC details every year to keep it active.

DGFT’s New Annual Update Requirement

As per the amendment made under Para 2.05 of the Foreign Trade Policy, IEC holders are now required to ensure the following:

1. Even if there are no changes in IEC details, the holder must log in to the DGFT portal and confirm that all details are correct.

2. This confirmation or update must be done between April and June every year.

3. If this update is not done within the specified timeline, the IEC will be considered inactive and may be deactivated by DGFT.

4. Once deactivated, the IEC can be reactivated by updating the profile on the portal.

This requirement is applicable to all IEC holders — whether individuals, sole proprietors, partnership firms, companies, or LLPs. It applies to both importers and exporters.

Why Was the Annual Update Introduced?

The government introduced the annual update system to ensure that DGFT’s database remains accurate and up to date. Earlier, many businesses would change locations, bank accounts, or contact details but never update their IEC information. This caused discrepancies during customs clearance, compliance checks, and subsidy claims.

With annual verification now mandatory, DGFT aims to:

• Maintain a clean and current database

• Prevent misuse of inactive or outdated IEC codes

• Enhance the overall transparency in cross-border trade

• Improve coordination between customs, banks, and trade bodies

What Happens If You Don’t Update IEC?

If an IEC holder fails to update or confirm their details between April and June of any financial year, the consequences can include:

• Deactivation of the IEC code by DGFT

• Inability to file import or export declarations with customs

• Delays or rejections in customs clearance

• Problems in receiving international payments

• Ineligibility for export promotion schemes or incentives

It’s important to understand that deactivation does not mean cancellation. Once the holder updates the IEC profile, it can be reactivated, but the delay can still cause disruption in business operations.

How to Check and Update IEC Details

The IEC update process is simple and can be done through the DGFT’s online portal. Here are the general steps:

1. Visit the official DGFT website and log in with your credentials.

2. Navigate to the ‘IEC Profile Management’ section.

3. Review the existing details, including address, email, mobile number, bank information, and director or partner details.

4. If there are no changes, simply confirm the same by submitting the form.

5. If there are changes, update the relevant fields and submit the revised application.

6. Use Aadhaar-based e-sign or digital signature to complete the process.

7. A confirmation receipt is generated for your records.

There is no government fee for this annual update.

Key Points to Remember

• IEC Registration remains valid for a lifetime, but confirmation is required annually.

• The update window is from April 1 to June 30 each year.

• Failing to update will deactivate your IEC code.

• Deactivation can disrupt imports, exports, and international payments.

• Updating IEC details does not require fresh documentation if no changes have occurred.

• Reactivation after deactivation is possible, but may take time.

Does IEC Ever Need to Be Cancelled?

In certain cases, businesses may want to cancel their IEC voluntarily. This is usually done when:

• The business has permanently shut down.

• The individual no longer engages in import-export activity.

• The business entity has merged, been acquired, or changed legal structure.

IEC cancellation can also be done online through the DGFT portal. Once cancelled, the IEC number cannot be used again.

Conclusion

The IEC code is a mandatory and foundational requirement for businesses involved in international trade from India. While the code itself does not expire, annual confirmation of details is now mandatory to keep it active. This update is part of the government’s broader effort to streamline trade processes and maintain clean, updated records.

If you already have an IEC, make sure to update it between April and June every year. If you’re planning to apply for IEC Registration, know that your code will remain valid for life — but staying compliant with the new annual update rule is essential to avoid disruptions.

In today’s fast-paced trade environment, timely compliance ensures that your business stays legally sound and operational in global markets.