Explained: Why is government pushing for companies to update Import Export Codes?
This move is part of efforts to remove IECs of "front organisations" such as the one allegedly connected to the importer of the 2,988 kg of heroin that was confiscated at the Mundra port.
A government official said the move to deactivate IECs that have not been updated was also aimed at cleaning out the IEC of firms such as Aashi trading company. (Representative image) The government is set to start deactivating Import Export Codes (IECs) for firms that have not given updated information to the government starting October 6. This move is part of efforts to remove IECs of “front organisations” such as the one allegedly connected to the importer of the 2,988 kg of heroin that was confiscated at the Mundra port and is currently being investigated by the Directorate of Revenue Intelligence (DRI).
What are the updated requirements for IEC?
Earlier this year, the Directorate General of Foreign Trade (DGFT) amended IEC rules to require all firms engaged in import or export to update their details every year between April and June. The DGFT later extended the timeline for firms to update details this year till the end of August based on requests by industry. The IEC granted by the DGFT is mandatory for any firm engaging in exports or imports.
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