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Here, we are going to brief you regarding new notification released for Import-Export code.
Some Changes have been made in Chapter 1 and Chapter 2 of Foreign Trade Policy, 2015-2020 by Directorate Genereal of Fireign Trade vide Notification No. 58/2015-20 issued on 12.02.2021.
Some major changes made in Chapter 2 Foreign Trade Policy, 2015-2020 as follows:
|FTP Paragraph No.||New Added Text|
|2.05 (d)||An IEC holder has to ensure that details in its IEC is updated electronically every year, during April-June period. In case where there are no changes in IEC details same also needs to be confirmed online.
|2.05 (e)||An IEC shall be de-activated, if it is not updated within the prescribed time. An IEC so de-activated may be activated, on its successful updation. This would however be without prejudice to any other action taken for violation of any other provision of the Foreign Trade Policy.
|2.05 (f)||An IEC may be also be flagged for scrutiny. IEC holder are required to ensure that any risks flagged by the system is timely addressed; failing which the IEC shall be de-activated.
Meaning of Aforesaid Text:
- By adding first paragraph, Govt has made compulsory for every IEC holder to update their details on IEC portal during April-June every year, irrespective of any changes have been made during the year or not.
- With second paragraph, Govt has tried to say the consequence of not updating the details. If no updation has been filed by IEC holder during the given period, his IEC will be marked De-activated by Department. However, you may get it activated again after filing the updation with Department.
- Third Paragraph says that Govt may call scrutiny for any IEC, so the IEC holder is required to check its IEC status on regular basis, failing which may lead to deactivation of IEC.
After reading the changes made in Notification, it may be summarized that Govt is not going to show any soft-corner in respect to Import-Export compliance and KYC.
On the second hand, It may be seen as a new compliance or burden for IEC holders. As they have to update their details on annual basis for regular working of IEC, on the contrary, if any time IEC marked under scrutiny and IEC holder with or without any reason is not aware of this, may face deactivation of IEC.
So, with keeping in view the regular updates being made by Govt, not only IEC holder but also their professionals need to be Cautious about the changes.
(If you want to know more or having any question in mind regarding the same, you may contact us via given mail id (email@example.com) or may ask via comment section below this blog)