Why MSMEs exporter Must Update Their DGFT IEC Every Year — A Simple Step That Can Save You from Costly Export Delays

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For any MSME, trader, or exporter in India, the DGFT IEC, (import export code) is more than just a number — it’s the passport to global business. Whether you export handicrafts, garments, machinery, or spices, your IEC is your business identity in international trade.

But what many small businesses still don’t realize is that DGFT now requires IEC updation every year, even if there are no changes in your business details. This simple compliance step, if ignored, can temporarily deactivate your IEC and bring your export operations to a halt.

You may also like to read: MCGS for Exporters: Strengthening India’s MSMEs with New Reforms, Bigger Credit, and Bolder Global Dreams

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DGFT’s Rule: DGFT IEC Annual Updation is Now Mandatory

According to the Directorate General of Foreign Trade (DGFT), every IEC holder must update or confirm their IEC details once every year by June 30, through the official DGFT portal.

• Even if nothing has changed in your details, you must log in and confirm your information.
• If not updated, your IEC gets deactivated automatically until you update it again.

For many MSMEs and traders, this simple digital compliance can make the difference between an on-time shipment and a costly delay.

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My Experience: From Missing an Updating my DGFT IEC to Doing It in Minutes

Two years back, I personally learned how important this small update can be.

I was unaware that DGFT had made annual IEC updation mandatory. My business was doing well, orders were ready to be shipped, and suddenly my Customs House Agent (CHA) called me one afternoon. He had discovered that my IEC had been deactivated while filing the shipping bill.

I was shocked!
I had no idea my IEC needed yearly confirmation. Thankfully, with my CHA’s guidance, I logged into the DGFT portal, completed the updation, and reactivated it within the same day.
But that experience taught me one clear lesson — if there had been even a slight delay, my shipment could have been held at the port. The financial and reputational damage could have been serious.

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You may also like to read: DGFT Temporarily Relaxes Inspection Certificate Requirement for Rice Exports to Non-EU European Countries

This Year’s Experience of updating my DGFT IEC : Easy, Fast, and Hassle-Free

This year, when I got the DGFT IEC reminder email, I immediately logged into the DGFT portal.
To my pleasant surprise, the entire process took less than 15 minutes!

I didn’t have to upload any new documents or make any complex changes.
All the information was already there — I simply verified my firm’s details, clicked “update,” and got the acknowledgment instantly after paying the fees of Rs 200 (if i remember correctly).

It’s that easy now.
No agents, no forms, no confusion. Just a simple online confirmation to keep your IEC active.

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Why This Matters for MSMEs and Traders

For small businesses, every shipment and every export order counts. Here’s why IEC updation should never be ignored:

1. 🏦 Avoid Shipment Delays
   Without an active IEC, customs won’t process your export documents. Even a few hours’ delay can cause demurrage charges or lost trust from buyers.
2. 💼 Stay Eligible for Export Benefits
   MSMEs with active IECs can claim government incentives such as RoDTEP, RoSCTL, Interest Equalization Scheme, and Market Access Initiative.
3. 💻 Part of the Digital MSME Ecosystem
   DGFT has made the entire IEC management digital — a great step under Ease of Doing Business. MSMEs can now handle compliance themselves, without middlemen.
4. 📈 Build a Strong Export Profile
   Regular IEC updation also helps your business maintain credibility and continuity when applying for export finance, trade fairs, or overseas partnerships.

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Step-by-Step: How to Update Your IEC Online

1. Visit the DGFT portal.
2. Log in using your registered email ID and password.
3. Go to “IEC Profile Management.”
4. Click on “Update IEC”.
5. Review and confirm your details (or make edits if necessary).
6. pay the requisite fees online
7. Submit and download the acknowledgment receipt.

That’s it. You’re done in a few clicks.

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A Simple Step, A Big Difference

For India’s growing MSME and export community, compliance and readiness go hand-in-hand.
DGFT’s annual IEC updation may seem like a small formality — but in reality, it’s the foundation of your global trade journey.

From my own experience, I can say this: it’s quick, simple, and entirely online. Don’t wait until your CHA calls you in a panic — log in today, verify, and stay export ready.

Because in exports, even a small missed update can mean a big missed opportunity.

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References

• DGFT Official Website – Import Export Code (IEC)
• DGFT Notification No. 58/2015-2020: Annual Updation of IEC
• Ministry of MSME – Export Support Schemes

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🧍‍♂️ About the Author

Tabrez is an entrepreneur, exporter, trader, and blogger who writes about MSMEs, startups, and business trends. Through BusinessZindagi.com, he shares real experiences and practical insights to help small businesses grow smarter and stay globally connected.