IEC Annual Update 2026: DGFT Deadline, Reactivation Process & Penalties

Introduction

IEC (Import-Export Code) comes with a 10-digit unique identification number, which is issued by the Directorate General of Foreign Trade (DGFT). IEC number allows businesses to legally maintain import-export activities. If any changes to IEC code details, or even no changes, businesses are required to update on the DGFT portal. Failure to comply with the IEC annual update will result in immediate deactivation. Without it, businesses cannot engage legally in import-export activities, including their bank also freezing, resulting in delays in customs clearance. Let’s dive into this guide to understand the importance of the IEC annual update, how it gets deactivated, and the process to fix it. 

What is the IEC Annual Update?

IEC (Import-Export Code) is a gateway to legally trade in a foreign country, including streamlining customs clearance and providing access to claim export benefits. Once the IEC number is issued, it is valid for the lifetime, which means the 10-digit alphanumeric code is valid unless it is suspended, cancelled, or revoked by the authority.

Despite having lifetime validity, businesses are required to maintain the annual IEC update on the DGFT portal, mandatory under Notification No. 58/2015-2020. IEC annual update is mandatory even when a business does not perform any trade activity in the year. Annual updating is a strategic way to verify if there are any changes to the business owner’s address, bank account, or partner details.

IEC Update Deadline 2026

For FY 2025-26, the window for IEC updating runs from 1st April to 30 June 2026. If reading after 30th June, it means your Import-Export Code (IEC) has been deactivated. To reactivate, follow the process mentioned below. 

Common Reasons Why Your IEC Gets Deactivated

Directorate General of Foreign Trade (DGFT) portal opens the window for IEC update, which runs from 1st April to 30th June annually. DGFT mandates all IEC holders to update the KYC details by login the portal, even if there are no changes. Here are the common reasons why your import/export code gets deactivated. 

• Automatic System Action: The DGFT portal is fully upgraded and strictly monitors non-compliant codes. Before deactivating the IEC number, the DGFT server doesn’t alerts with advancewarning or not provides grace period.
• “No Changes” Misconception: Businesses often assume that if there is no change to their  KYC details, they do not need to follow the IEC annual update process. Despite no changes, the businesses are required to log in to the DGFT portal and file the annual update.
• Failed to Activate DSC: A Digital Signature Certificate (DSC) is required during the DGFT portal verification. If your DSC is invalid or going to expire, you cannot complete the IEC update process if you file by the last week of June.
• Missed DGFT Reminders: DGFT portal sends the routine reminders on the business’s registered mobile number and email address, which are forwarded to the spam folders or to former employees, causing the deadline to slip by unnoticed.
• New Registration Misconception: The new IEC registration holders assume that, as they recently obtained the license, it means they are exempt from the upcoming annual compliance formalities.

What Are the Consequences After IEC Deactivation?

Having an inactive IEC (Import-Export Code) means businesses cannot engage in international trade operations, as it gets immediately halted. This single 10-digit verification code impacts the whole customs clearance server. Here are the specific challenges you may face without a valid IEC:

• Shipment Blockage:

 An active IEC number is used for verification at ports. With an inactive import/export code, the customs authority will refuse to clear the shipments at the ports. It triggers costly goods damage. 

• Freeze Bank Transactions:

 The  Authorized Dealer (AD) banks reject the international remittance transfer, which results in managing the import or export transactions accurately. 

• Fail to Claim Incentives:

You will not be liable to claim the government-introduced schemes like RoDTEP, Advance Authorisation, and EPCG. 

• Failure to Navigate the ICEGATE Portal: 

Invalid IEC status makes it difficult to apply for any filing, bill of entry submissions, or shipping bill on the  ICEGATE portal. 

Process To Update / Reactivate IEC on the DGFT Portal 

Whether you are using the DGFT portal to update the IEC (Import Export Code) or to reactivate it, the process is almost similar, as the portal doesn’t have a separate “reactivation” form. The steps to modify IEC are as follows-

Step 1: Log in to the DGFT Portal

Visit the dgft.gov.in portal and log in using the username and password. If you are new to the portal, you must register on it as an exporter/importer and link your PAN card plus existing IEC (Import Export Code). 

Step 2: Navigate to IEC Profile Management

Once log in to the portal, navigate to the dashboard where you find the option of “Services” and then “IEC Profile Management”. 

Step 3: Select “Update/Modify”

After clicking on the “Update/Modify” option, the dashboard showcases the pre-filled data. Check all pre-filled data accurately mentioned for the financial year April to June. 

Step 5: Confirm or Update Changes

If no changes occur to your IEC, leave the pre-filled data as it is; however, if changes occur, enter them in the sections of the portal. Click on “Submit” and authenticate by using the Aadhaar OTP or DSC. 

Step 6: Sign Application & Pay (If Applicable)

The IEC annual update fee depends on whether the changes occur to your KYC details or not.

• Scenario A: If there are no changes, you don’t need to pay the fees as it is zero; only proceed to e-sign and authenticate by using your Aadhaar OTP or Digital Signature Certificate.

• Scenario B: If changes are made, the fee is charged at ₹200, which can be paid through the prescribed payment gateway.

Step 7: Automated Processing

Click “Submit”. The DGFT portal cross-matches your entries against the CBDT (PAN) database in real-time. In almost all cases, approval is immediate, and your status turns to "Active."

2026 Policy Update: NPCI-Based Bank Validation 

The Directorate General of Foreign Trade (DGFT) published a strict enforcement framework called Trade Notice No. 23/2025-26. This newly issued strict enforcement framework focuses on the DGFT's upgraded features. The DGFT portal utilizes a real-time integration with the National Payments Corporation of India (NPCI). Now, the new IEC application or existing modification details are verified via automated API cross-checking. To accurately verify the applicant's PAN, Entity/Individual Name, and Account Number, etc, the NPCI  follows the three-point mapping system test. The newly introduced framework forces applicants to link all their active bank accounts with their PAN.

Fees for Updating IEC

The holders of the Import Export Code are generally required to pay the fees for IEC modification when they update their KYC details. The fee chart for IEC modification follows:

Important Reminder: Your IEC will be deactivated if failed to file the IEC update application before 30th June. However, there is no late-fee penalty and no separate application for delay in the IEC annual update. Simply log in to the DGFT portal and pay the fees only for the IEC annual update, which is ₹200. 

Conclusion

IEC annual update is more than a legal formality, and it is mandatory to be followed by all IEC (Import-Export Code) holders. If failed to update the  KYC  details annually on the  DGFT portal, the server automatically deactivates it, resulting in disruption to customs clearance. Without an active IEC, you cannot generate the shipping bill on IECGATE, even with delays in customs clearance at the ports and restrictions on export incentives. On-time IEC  profile management prevents costly mistakes and makes the customs clearance process smoother and faster. June 30th IEC deadline passed, and you are still awaiting an update? No worries, the professional and dedicated experts of JustStart help you to meet the DGFT's annual update guidelines. 

Got a Doubt? Clear with Frequently Asked Questions

Q1. What is the last date to update IEC in 2026?

Ans. The last date to update IEC in 2026 was 30 June 2026. The window opened from 1st April to 30th June on the DGFT portal. 

Q2. Is it mandatory to update IEC?

Ans. Yes, it is legally mandatory to update the IEC (Import -Export Code) annually on the  DGFT portal from 1st April to 30 June. Even an updated IEC is mandatory when no changes have been made. 

Q2. Can I apply for the IEC annual update after 30th June?

Ans. Yes, you can apply for the IEC annual update after the 30th June; however, you are required to pay ₹200 for the processing. After 30th June, your IEC will be deactivated on the portal and will not be reactivated unless you apply for a modification. 

Q3. How do I update IEC (Import/Export Code)?

Ans. You can update your IEC (Import/Export Code) online by logging in to the Directorate General of  Foreign Trade (DGFT) portal. The IEC holders are required to update their KYC details between April and June every year. 

Q4. What is the difference between an IEC annual update and an IEC modification?

Ans. The Import-Export Code (IEC) annual update refers to the confirmation that existing details are accurate. IEC modification refers to modifying the active registered details such as business name, bank details, and directors. 

Q5. Do I need to update my IEC if no changes occurred?

Ans. Yes, it is strictly mandatory that all IEC holders visit the DGFT portal annually and verify their details.

Q6. What is the cost for an IEC (Import Export Code)?

Ans. The government fees to obtain the new IEC (Import Export Code) are ₹500. In case you take the assistance of a legal advisor/professional, the service cost may range between ₹1,000 and ₹3,500 

Q7. What is the validity of the IEC (Import-Export Code)?

Ans. An IEC number is valid for its lifetime once issued by the Directorate General of Foreign Trade (DGFT). However, the IEC holders are required to visit the portal annually to update it, and the cost is ₹200 if a modification is required. 

Q8. Is GST registration mandatory to obtain the IEC?

Ans. No, it is not compulsory to obtain the GST registration certificate for IEC (Import-Export Code). You can absolutely apply on the DGFT portal by utilizing your PAN, Aadhaar, and cancelled cheque. 

Q9. What is the use of DSC during IEC modification?

Ans.  IEC holders use the  Aadhaar OTP or DSC  (Digital Signature Certificate) to authenticate. Meanwhile, the DSC is used during the IEC modification to verify the applicant’s identity and digitally sign the modification application. 

Q10. Can I update IEC myself on the DGFT portal?

Ans. Yes, you can update your IEC yourself. For the IEC annual update, visit the Directorate General of  Foreign Trade ( DGFT) portal. To avoid procedural errors, you can appoint a professional.