Why Does the IEC Get Deactivated?

The Importer Exporter Code (IEC) issued by the Directorate General of Foreign Trade (DGFT) is a mandatory license for individuals or businesses involved in import or export in India. However, as per the latest DGFT guidelines, an IEC can be deactivated if not updated regularly.

According to the IEC Advisory dated 12th February 2021, all IEC holders must update or confirm their IEC details annually, between April and June, through the DGFT portal. Even if no changes are required, a “zero update” submission is mandatory. Failing to do so results in automatic deactivation of the IEC after the June deadline.

This rule was introduced to maintain a current and verified database of active IEC holders, ensure compliance, prevent misuse, and streamline trade facilitation. Deactivation does not cancel the IEC permanently—it just makes it temporarily inactive in the DGFT system, blocking the ability to engage in import-export transactions until reactivated.

IEC deactivation may also occur if the DGFT finds discrepancies, non-compliance, or inactive status over a long period.

To prevent deactivation, IEC holders must log in to the DGFT portal each year and complete the update process—even if their details remain unchanged. Reactivation is easy through the same portal by completing the pending update.