Is IEC Required to Be Renewed Every Year?

Is IEC required to be renewed every year? Short answer: No, but yes, sort of. The Importer Exporter Code itself never expires and never needs to be renewed in the traditional sense. But since 2021, DGFT has made it mandatory for every IEC holder to log in and confirm or update their details once a year, between 1st April and 30th June. Skip that, and your IEC gets deactivated even though it technically never “expired.”

This is the single most misunderstood rule in IEC compliance, so here’s the precise breakdown.

IEC Validity vs. the Annual Updation Requirement

Why Does DGFT Require This If the IEC Doesn’t Expire?

Three practical reasons, straight from how DGFT has explained the rule:

1. Keeps the database accurate. DGFT uses this to know which IEC holders are still operating, so the registry isn’t full of inactive or shut down businesses.
2. Filters out dormant codes. It’s a yearly check that the entity behind each IEC genuinely exists and is still trading.
3. Keeps Customs and DGFT records in sync. Since IEC status feeds directly into ICEGATE, an unconfirmed IEC creates friction at the exact moment you need clearance.

How to Complete the Annual Updation

1. Log in to the DGFT portal.
2. Go to Services, then IEC Profile Management, then Update IEC.
3. Review every section of your existing details.
4. If nothing has changed, simply confirm each section.
5. If something has changed, edit that section and upload the relevant supporting document.
6. Authenticate using your DSC (companies, LLPs, partnerships) or Aadhaar OTP (proprietors).
7. Submit. You’ll get immediate confirmation and can download the updated e-IEC certificate.

Is IEC Required to Be Renewed Every Year? Fee Explained

No fee for the standard annual confirmation when no details have changed. A nominal fee may apply only in specific cases involving certain modifications to firm details, though this varies and isn’t charged in most routine confirmations.

What Happens If You Don’t Update On Time?

Your IEC is automatically deactivated from 1st July. While deactivated:

• No import or export shipment can clear customs under that IEC.
• Goods already in transit can be held, accumulating demurrage costs.
• Banks may decline to process foreign trade payments linked to that IEC.
• You lose access to export incentive schemes (RoDTEP, EPCG, Advance Authorization) until reactivated.

There’s no late penalty, and reactivation is automatic the moment you complete the same updation process, even months after the deadline. For the full scenario breakdown, see What if IEC is Not Updated Till 30 June?

To confirm your current status before it becomes a problem, see How to check IEC renewal status? or check directly via ICEGATE.

Frequently Asked Questions.

Q1. Does my IEC expire if I don’t renew it?

No, the IEC number itself never expires. It only gets deactivated if you skip the mandatory annual confirmation. Deactivation and expiry aren’t the same thing; deactivation is reversible the moment you update.

Q2. Do I need to do anything if none of my business details have changed?

Yes. You still have to log in and explicitly confirm your existing details are correct. Silence or inaction is treated as non-compliance, not as “no change needed.

Q3. Is this requirement the same for every type of business entity?

Yes, proprietorships, partnerships, LLPs, and companies are all equally required to complete the annual updation. The only difference is the authentication method: Aadhaar OTP for proprietors, DSC for everyone else.

Q4. What law requires this?

DGFT Notification No. 58/2015-2020, dated 12 February 2021, made annual updation mandatory for all IEC holders.

Q5. If my IEC gets deactivated, can I still apply to reactivate it years later?

Yes. There’s no expiry on reactivation. Completing the updation process reactivates the IEC regardless of how long it was deactivated.