IEC Renewal Charges: How Much Does It Cost?

The IEC Code is your ticket to the world market if you are appointed in international trade, whether you are exporting goods or providing services to customers in other countries. The Import Export Code, which is issued by the Directorate General of Foreign Trade (DGFT), is required for companies and people who want to do cross-border business from India. Although the majority of traders are aware of IEC Code Registration, there is frequently misunderstanding over its renewal, particularly following the 2021 DGFT-mandated yearly upgrades. Everything you need to know about IEC Renewal Charges, the IEC Update procedure, and whether any government fees apply will be covered in this extensive post.

What is IEC Code?

The DGFT assigns companies and people a 10-digit unique registration number known as the IEC Code, or Import Export Code. This code is necessary for any financial transaction that crosses Indian boundaries, whether you're exporting digital services to overseas customers or importing commodities for resale.

Once obtained through IEC Registration, the code allows businesses to:

• Apply for customs clearance

• Receive foreign currency payments

• Claim export incentives and GST refunds

• Establish international credibility

Is IEC Code Valid for a Lifetime?

Yes, at first. The registration for the IEC Code is valid for life. But according to DGFT Notification No. 58/2015-2020, which was issued on February 12, 2021, all IEC holders are required to update their IEC information once a year, even if nothing changes. Every fiscal year, this update needs to be completed between April and June. The IEC Code may be deactivated for noncompliance, which would stop import-export activities. Since this annual IEC Update is required for all current IEC holders, the term "IEC renewal" today refers to it.

Is There a Government Fee for IEC Renewal?

One of the most frequently asked questions is: How much does it cost to renew or update your IEC Code? The good news is:

There is currently no government fee for IEC renewal or annual IEC Update.

That means, if you’re completing the annual IEC update on your own through the official DGFT portal, there are zero charges. However, if you hire a consultant or third-party service provider to assist with the update, they may charge a professional service fee, which varies depending on the provider.

How to Do the IEC Update

Follow these simple steps to complete your IEC Update through the DGFT portal:

Step 1: Visit the DGFT Website

Go to https:www.dgft.gov.in

Step 2: Log In

Use your registered credentials to log in. If you’re doing it for the first time, create a user account using your business PAN.

Step 3: Choose “IEC Update”

Click on the “Update IEC” or “Modify IEC” section under the services menu.

Step 4: Review Details

You’ll see pre-filled data from your previous IEC Code Registration. Review each section carefully.

Step 5: Make Necessary Changes

If there are any updates to your address, email, contact, or bank details, make the changes.

Step 6: Confirm & Submit

Even if there are no changes, you still need to confirm and submit the IEC for the financial year.

Step 7: DSC or Aadhaar eSign

You will be required to authenticate the submission using:

• Digital Signature Certificate (DSC), or

• Aadhaar-based e-sign

Step 8: Get Acknowledgement

You’ll receive an acknowledgment once the IEC Update is complete. You can also download the revised Import Export Code certificate reflecting any changes.

Why Is IEC Renewal Important?

Failing to complete your annual IEC Update can lead to temporary deactivation of your Import Export Code. This can result in:

• Customs rejection during shipment clearance

• Inability to generate shipping bills

• Delay in foreign payments

• Missed opportunities for export schemes

Hence, staying compliant with the IEC Registration renewal requirement confirms uninterrupted business operations.

What If My IEC Code is Deactivated?

If your IEC was deactivated due to non-renewal, don’t worry—it can be reactivated by simply completing the IEC Update for the respective financial year. Once the update is done, your IEC will be restored automatically.

Professional Fees for IEC Renewal (If You Outsource)

While the government doesn’t charge for the IEC Update, some businesses prefer to hire professionals to handle the compliance work. In such cases, the professional service fee for IEC renewal normally ranges between ₹300 to ₹1000, depending on:

• Service provider

• Complexity of changes

• Mode of authentication (DSC or Aadhaar)

Tip: If you have a digital signature and internet access, you can complete the update yourself for free.

Expert Tip: Set a Reminder for Annual IEC Update

Set a calendar reminder to confirm you don't miss the deadline, as the IEC Update window is open from April 1st to June 30th each year. A straightforward but essential step to maintain your IEC Code Registration is to log in and verify your current information, even if you haven't made any company adjustments.

Final Thoughts

In conclusion, there are no fees imposed by the government for renewing an IEC Code. The full procedure is free if you're managing it independently via the DGFT portal. However, depending on your service provider, outsourcing the task can entail small professional service fees. Being proactive with IEC Registration and Import Export Code revisions is not only good practice, but also necessary in today's compliance-driven corporate climate. Ignoring yearly renewals can cause problems for international transactions and harm your reputation with customs officials and clients throughout the world. Take control of your compliance schedule and establish an annual IEC Update routine; it's easy, cost-free, and essential to maintaining the efficiency of your international commerce operations.

Common FAQs on IEC Renewal Charges

Q1. Do I need to pay every year for IEC Update?

Ans No, the DGFT does not charge any fee for annual IEC renewal.

Q2. Can I do the IEC Update myself?

Ans  Yes, the process is online, user-friendly, and free on the DGFT website.

Q3. Is a Digital Signature mandatory for the IEC Update?

Ans  You can use either a DSC or Aadhaar e-sign for authentication.

Q4. What happens if I don’t update my IEC Code?

Ans  Your Import Export Code will be deactivated, and you won’t be able to use it for export or import activities.