Incorrect Data in certain Import Export Code

Import Export Code: Recent Scenarios

Trade Notice No. 39/2019-20 was recently issued by the Director General of Foreign Trade (DGFT) on November 19th, 2019. It was to notify the incorrect data that mismatched in the reported Import Export Code Number. During the analysis of the database of the DGFT IEC Registration, the department observed that there were certain issues related to the data mismatches for which correction plan is to be initiated immediately. Since, Import Export License or IEC required for export import of goods, therefore the holders have been requested to make the changes immediately.

Import Export Code

Category of Data that mismatched in the reported IEC’s:

The department has broadly categorized this data into two categories for making the corrective action plan much easier to implement. These categories are-

  • Import Export Code having wrong or incorrect Permanent Account Number (PAN) Card details: For such mistakes there were approximately 22,893 cases all over India. The list of IEC’s for the same has been provided in the Trace Notice Annexure 1. All the IEC’s holders have been notified to check and ensure that the PAN they have provided is correct. They have been asked to update it and reflect it correctly in the database. If the PAN information is wrong or even if a person wants to update it and make changes to the same then they are required to submit a written statement to the DGFT Regional Authority (RA) in the jurisdiction on the letter head. A self-certified PAN copy is to be submitted along with it. The online application module for IEC does not accommodate the facility for making changes in the PAN.
  • Import Export Code holders that have same PAN Card existing in more than one IEC’s: There were approximately 8353 cases where a person has registered Import Export Code with the same PAN Card. The IEC list for this mistake cases have been provided by the department in the Trace Notice Annexure 2. Every Import Export Code holder have been strictly notified to ensure that only one IEC Registration exists for them against one PAN Card. If more than one IEC’s are active for the same PAN then the holder is required to make a written statement and request to cancel these IEC’s on the letter head, separately for each held Import Export Code. This request has to be made in the concerned Regional Authority of DGFT in various jurisdictions. After observing and going through the due diligence, the Regional Authority take actions accordingly. If an IEC holder does not approach them for making necessary changes then the Regional Authority has the power to cancel the multiple Import Export Code’s against one PAN. If the holder wants to reactivate the IEC then the holders have to provide with the necessary documentation along with the written request to the Regional Authority.

Director General of Foreign Trade have instructed all the Import Export Code holders to take immediate measures and make corrections accordingly, as per the information given in the above-mentioned annexures. These corrections have to be made on or before December 15th, 2019. If a person fails to update the same then there IEC Registration will be cancelled as per the notification.

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.
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