Explained: Why the government is making it mandatory to update import and export codes
The government is about to start disable import and export codes (IEC) for companies that have not provided updated information to the government as of October 6. The move is part of efforts to remove IEC from “front organizations” such as the one allegedly linked to the importer of the 2,988 kg of heroin that was confiscated at Mundra and is currently under investigation. by the Tax Intelligence Directorate (DRI).
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What are the updated requirements for IEC?
Earlier this year, the General Directorate of Foreign Trade (DGFT) amended CIS rules to require all companies engaged in importing or exporting to update their contact details every year between April and June. DGFT then extended the deadline for companies to update details this year until the end of August based on industry requests. The IEC issued by the DGFT is compulsory for any company carrying out export or import activities.
What is the link between this decision and the seizure of heroin at the port of Mundra?
The heroin seized by the DRI was found in a shipment classified as “semi-processed talc stones” imported by Aashi Trading Company. The company also imported a shipment officially declared as “semi-processed talc stones” in June. Government sources said they did not immediately have details of the company and that company records were not available from the company registrar on the Ministry of Corporate Affairs (MCA) website. The company could, however, be registered as a sole proprietorship with the MCA, as the ministry does not release details of these companies.
A government official said the decision to disable IECs that weren’t updated was also aimed at cleaning up IECs from companies such as the Aashi trading company.
“We don’t have their emails or phone numbers, there are people who received IECs 20 years ago,” the official said, noting that removing these IECs would be part of the plan. government cleanup effort. In the first phase of IEC deactivation, the DGFT should deactivate IECs for companies that have not updated information with the government since early 2005.