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| + | ====== IEC Suspended or DGFT Risk-Flagged? | ||
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| + | **If your shipping bill is bouncing or your export benefits are stuck, your Importer Exporter Code (IEC) may be inactive, suspended, or carrying a DGFT risk flag. This is usually fixable. This guide explains how to check the exact status on the DGFT portal, complete the annual update, gather your evidence, file a representation, | ||
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| + | {{: | ||
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| + | **Reviewed on:** 2026-05-29. | ||
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| + | <WRAP center round info 95%> | ||
| + | **Quick answer** | ||
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| + | Most blocked-export problems trace back to a missed annual IEC update, a pending KYC, a suspension by DGFT, or a risk or alert flag. Log in to the DGFT portal, read the exact status on your IEC profile, and save a screenshot. If it is a missed annual update, complete the update or modification flow and the IEC usually re-activates on its own. If it is a suspension or flag, find the reason, file a written representation with your Regional Authority with full documents, and escalate through DGFT grievance and CPGRAMS. RTI can get you the order and recorded reasons, but only DGFT can lift the block. For high-stakes cases, engage a customs or foreign-trade consultant. | ||
| + | </ | ||
| + | |||
| + | ===== Who this guide is for ===== | ||
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| + | This guide is for Indian exporters and importers whose **Importer Exporter Code (IEC)** has stopped working as expected. The IEC is the basic ten-digit identification number, now linked to your PAN, that you need to clear most imports and exports through customs. When something is wrong with it, your trade simply stops moving. | ||
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| + | It is useful if you are in any of these situations: | ||
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| + | * Your IEC shows as **inactive** on the DGFT portal, most often because the mandatory annual IEC update was missed. | ||
| + | * You received a **suspension or cancellation** notice or order from DGFT or your Regional Authority alleging a contravention of the Foreign Trade Policy. | ||
| + | * A **risk flag or alert flag** has appeared against your IEC and your export benefits or refunds are held up. | ||
| + | * Your **shipping bill is being held or rejected** at the port or on ICEGATE, and you suspect the IEC status is the cause. | ||
| + | * Your **KYC is pending** on the DGFT side and you are not sure what to upload. | ||
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| + | If you do not have an IEC yet, or you need the basics of how the code is issued, start with our companion guide on how to [[/ | ||
| + | |||
| + | ===== What you can do this weekend ===== | ||
| + | |||
| + | ==== Friday evening ==== | ||
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| + | Log in to the [[https:// | ||
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| + | Check your registered e-mail and the mobile number linked to the IEC. DGFT sends notices and status alerts there. If a notice or order is attached, download it and note who issued it, the alleged ground, and any reply deadline. | ||
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| + | Write down which case you are in. A missed annual update is the easiest to fix and you may resolve it the same evening. A suspension, cancellation, | ||
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| + | ==== Saturday ==== | ||
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| + | If the status points to a **missed annual update**, open the modify or update IEC flow on the portal. The annual update is expected once a year even if nothing has changed. Confirm or correct your address, bank account and AD code, branch details, and the names of your directors or partners. Submit using your digital signature certificate or the Aadhaar e-sign as prompted. Re-check the status afterwards and save the acknowledgement. | ||
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| + | If the status is a **suspension, | ||
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| + | Read the notice line by line and match each alleged ground to a document that answers it. If the notice says your address could not be verified, line up your latest utility bill or rent agreement. If it alleges a mismatch with PAN or GST, line up those certificates. This mapping is the backbone of a strong representation. | ||
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| + | ==== Sunday ==== | ||
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| + | Draft your representation to the Regional Authority using the template later in this guide as a starting point. Keep it factual and answer every point in the notice in order. Number your annexures and list them at the end so the officer can find each document quickly. | ||
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| + | If your IEC is suspended or flagged for an alleged contravention, | ||
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| + | Finalise the representation, | ||
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| + | ===== Documents and evidence checklist ===== | ||
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| + | ^ Document ^ What it proves ^ Where to get it ^ | ||
| + | | IEC status screenshot from DGFT portal | Exact status: inactive, suspended, cancelled, or flagged, with date | dgft.gov.in > login > My IEC / IEC profile (save dated screenshot) | | ||
| + | | IEC certificate | Your IEC number and registered details | DGFT portal > Print IEC / download | | ||
| + | | Suspension / cancellation / show-cause notice | The alleged ground and the reply deadline | DGFT portal notices and your registered e-mail | | ||
| + | | PAN card | Identity linked to the IEC (IEC is PAN-based) | Your records / income-tax e-filing portal | | ||
| + | | GST registration certificate | Active GST registration; | ||
| + | | Bank account proof and AD code letter | Banking channel and authorised dealer linkage for exports | Your bank branch / net-banking | | ||
| + | | Address proof (utility bill / rent agreement) | Registered address is genuine and verifiable | Your utility provider / lease records | | ||
| + | | Recent shipping bills | Genuine export activity under the IEC | ICEGATE / your customs broker | | ||
| + | | Export invoices and contracts | Underlying genuine trade transactions | Your accounts / sales records | | ||
| + | | Bank realisation certificates / FIRC | Export proceeds actually received through banking channel | Your bank (eBRC on DGFT portal where available) | | ||
| + | | Director / partner KYC documents | Authorised persons match DGFT records | Your company / firm records | | ||
| + | |||
| + | ===== Step-by-step action plan ===== | ||
| + | |||
| + | ==== Step 1 — Check the exact IEC status on the DGFT portal ==== | ||
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| + | Log in to the DGFT portal and open your IEC profile. Read the status field exactly as written. There is a real difference between an IEC that is merely **inactive** for a missed annual update and one that has been **suspended or cancelled** by an order, or one carrying a **risk or alert flag**. Do not guess from a customs error message alone; confirm the cause on the DGFT side. Save a dated screenshot of the status screen before you do anything else. | ||
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| + | ==== Step 2 — Understand the annual IEC update requirement ==== | ||
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| + | Every IEC holder is expected to electronically confirm or update the IEC details once a year, even when nothing has changed. If you miss this window, the system can mark the IEC as inactive and your exports and benefits stop. This is the single most common reason an IEC suddenly stops working. The fix is usually simple: complete the update and the IEC re-activates. Treat the annual update as a recurring calendar reminder so it never lapses again. | ||
| + | |||
| + | ==== Step 3 — Complete the annual update or pending KYC if that is the cause ==== | ||
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| + | If the status points to a missed update, open the modify or update IEC flow. Confirm or correct your address, bank and AD code, branch details, and director or partner names. Upload any KYC documents the portal asks for. Submit using your digital signature certificate or Aadhaar e-sign. After submission, re-check the IEC status and save the acknowledgement. In most non-update cases the IEC re-activates automatically once the update goes through successfully. If your DSC is the obstacle, sort that out first; see our related note on digital-signature problems linked at the end. | ||
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| + | ==== Step 4 — Find out the reason for a suspension or flag ==== | ||
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| + | If the IEC is suspended, cancelled, or flagged, the cause is not always shown clearly on the portal. Check for any uploaded notice or order, and check your registered e-mail. You are entitled to know the grounds. If the recorded reasons are not visible, write to the Regional Authority that holds your IEC asking for a copy of the order and the reasons, or file an RTI for the same records. Common triggers in practice include an unverified address, a mismatch between IEC, PAN and GST records, a link to a flagged or non-existent entity, or an intelligence input shared with customs. | ||
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| + | ==== Step 5 — Assemble your exporter evidence bundle ==== | ||
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| + | Collect everything in the documents checklist above and organise it in the order your representation will refer to. The goal is that every allegation in the notice can be answered with a specific, numbered document. If the notice questions the genuineness of your trade, your shipping bills, export invoices, and bank realisation certificates together tell a clean, verifiable story. Keep both digital and printed sets. | ||
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| + | ==== Step 6 — Prepare and submit your representation ==== | ||
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| + | Address your representation to the **Regional Authority** of DGFT that issued the notice or holds your IEC. State your IEC number, legal name, and registered address, then answer each ground in turn, cross-referencing the annexure that supports each answer. End with a clear request to drop the suspension or remove the flag and restore your IEC. Submit through the DGFT portal grievance route or the official e-mail, and keep the dated acknowledgement. Use the template below as a starting point and have a consultant review it for any serious matter. | ||
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| + | ==== Step 7 — Track the decision and escalate if there is no response ==== | ||
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| + | Mark your calendar from the date of the acknowledged submission. If you receive no decision within the time stated in the notice, send a polite follow-up to the Regional Authority and lodge a grievance on the DGFT portal. If it is still unresolved, escalate on [[/ | ||
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| + | ==== Step 8 — Use RTI for records and consider an appeal ==== | ||
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| + | If DGFT has not supplied the suspension order, the recorded reasons, or the status of your representation, | ||
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| + | ===== Escalation ladder ===== | ||
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| + | ^ Stage ^ Action ^ Forum / Destination ^ Target timeline ^ | ||
| + | | 1 | Complete annual IEC update / pending KYC on the portal | DGFT portal (dgft.gov.in) — My IEC / Modify IEC | Same day; status usually refreshes promptly | | ||
| + | | 2 | File written representation against suspension / flag with evidence | Regional Authority of DGFT that issued the notice | Within the deadline stated in the notice | | ||
| + | | 3 | Follow-up and online grievance if no decision | DGFT portal grievance / helpdesk | After the notice deadline lapses; note ticket number | | ||
| + | | 4 | CPGRAMS grievance to Department of Commerce / DGFT | pgportal.gov.in — Ministry of Commerce and Industry | Government target (varies); note registration number | | ||
| + | | 5 | RTI application for the order, recorded reasons and file movement | CPIO, relevant DGFT office | 30 days (RTI Act) | | ||
| + | | 6 | Appeal to higher DGFT authority or writ petition (if suspension wrong) | Higher DGFT authority / High Court under Article 226 | Retain customs / foreign-trade advocate | | ||
| + | |||
| + | ===== Copy-paste representation template ===== | ||
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| + | Replace the text in square brackets with your own details before sending. Keep it factual and answer each ground in the notice. | ||
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| + | To, | ||
| + | The Regional Authority | ||
| + | Directorate General of Foreign Trade (DGFT) | ||
| + | [Name and Address of Regional Authority Office] | ||
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| + | Date: [DD/ | ||
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| + | Subject: Representation against suspension / risk-flag on IEC [Your 10-digit IEC] | ||
| + | and request for restoration | ||
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| + | Respected Sir / Madam, | ||
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| + | 1. I am [Your Name], the [Proprietor / Partner / Director / Authorised | ||
| + | | ||
| + | | ||
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| + | 2. On accessing the DGFT portal on [DD/ | ||
| + | shown as [inactive / suspended / cancelled / carrying a risk-alert flag] | ||
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| + | | ||
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| + | 3. I respectfully submit that my IEC and trade activities are genuine and | ||
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| + | (a) My IEC, PAN and GST registration are valid and consistent | ||
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| + | (b) My registered address is correct and verifiable | ||
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| + | (c) My bank account and AD code are duly linked for export operations | ||
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| + | (d) My exports are genuine, as evidenced by shipping bills, export | ||
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| + | (e) [If applicable: I have now completed the annual IEC update / pending | ||
| + | KYC on the portal on [DD/ | ||
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| + | 4. [Answer each specific ground stated in the notice here, one by one, each | ||
| + | with a reference to the supporting annexure.] | ||
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| + | 5. In view of the above, I request you to restore my IEC by [reactivating it / | ||
| + | | ||
| + | as the conditions warranting any restriction do not exist. | ||
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| + | 6. I am available for any personal hearing or to produce original documents | ||
| + | for verification at a time convenient to your office. | ||
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| + | Yours faithfully, | ||
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| + | [Your Full Name] | ||
| + | [Designation: | ||
| + | [Legal Name of Business] | ||
| + | [IEC] / [PAN] | ||
| + | [Mobile Number] | ||
| + | [Email Address] | ||
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| + | Enclosures (Annexure List): | ||
| + | A — IEC status screenshot (dated [DD/ | ||
| + | B — Suspension / show-cause notice [if received] | ||
| + | C — IEC certificate, | ||
| + | D — Address proof | ||
| + | E — Bank account proof and AD code letter | ||
| + | F — Shipping bills, export invoices, bank realisation certificates | ||
| + | G — Annual update / KYC acknowledgement [if applicable] | ||
| + | |||
| + | ===== When RTI can help ===== | ||
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| + | The Right to Information Act, 2005 applies to public authorities, | ||
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| + | * **Getting the suspension or cancellation order with recorded reasons:** If DGFT has not given you a copy of the order or the grounds, file an RTI with the Central Public Information Officer of the relevant DGFT office. Ask for a copy of the order suspending or flagging IEC [Your IEC], together with the recorded reasons, the name and designation of the officer, and the date. | ||
| + | * **Tracking a pending representation: | ||
| + | * **Understanding the basis of a risk or alert flag:** Ask what record or input led to the flag against your IEC and what action is required of you to clear it, to the extent the information can be disclosed. | ||
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| + | To file an RTI online, see our step-by-step [[/ | ||
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| + | ===== When RTI will not help ===== | ||
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| + | RTI has clear limits here, and it is important to be honest about them: | ||
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| + | * **RTI cannot lift your suspension or remove the flag:** RTI gets you information, | ||
| + | * **RTI does not reach private parties:** If your problem actually sits with a private bank, a customs broker, or a buyer abroad, RTI does not apply to their internal records. You deal with them directly or through the relevant private remedy. | ||
| + | * **RTI is not faster than the operational route:** The CPIO has up to thirty days to respond. The portal update, the representation, | ||
| + | |||
| + | ===== Common mistakes to avoid ===== | ||
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| + | * **Assuming the IEC is gone for good:** An inactive IEC for a missed annual update is one of the easiest problems to fix. Do not register a new entity in a panic; update the existing IEC first. | ||
| + | * **Skipping the annual update:** The yearly IEC confirmation is mandatory even if nothing changed. Set a recurring reminder so a lapsed update never silently freezes your exports again. | ||
| + | * **Guessing the cause from a customs error alone:** A held shipping bill can have many causes. Confirm the actual IEC status on the DGFT portal before you act, so you fix the right problem. | ||
| + | * **Replying to a notice without documents: | ||
| + | * **Missing the reply deadline:** Suspension and show-cause notices carry a deadline. Diarise it the day you receive the notice and submit with proof before it lapses. | ||
| + | * **Ignoring related compliances: | ||
| + | * **Going it alone on a serious allegation: | ||
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| + | If your export refunds or other port-side processes are also stuck, see our companion guides on [[/ | ||
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| + | ===== Official links ===== | ||
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| + | * [[https:// | ||
| + | * [[https:// | ||
| + | * [[https:// | ||
| + | * [[https:// | ||
| + | * [[https:// | ||
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| + | ===== Frequently asked questions ===== | ||
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| + | ==== Why has my IEC become inactive or been deactivated? | ||
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| + | The most common reason is the missed annual IEC update. Every IEC holder is expected to electronically confirm or update IEC details once a year, even if nothing has changed. If you miss the window, the system can mark the IEC as inactive. Other reasons include suspension or cancellation by DGFT for alleged contravention of the Foreign Trade Policy, or a risk or alert flag raised after intelligence inputs. Always check the actual status note on the DGFT portal before assuming the cause. | ||
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| + | ==== How do I reactivate an IEC that went inactive for non-update? ==== | ||
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| + | Log in to the DGFT portal with your IEC credentials, | ||
| + | |||
| + | ==== What is a DGFT risk flag or alert flag on my IEC? ==== | ||
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| + | A risk or alert flag is a marker placed on an IEC by DGFT or linked customs systems when a profile is selected for closer scrutiny. It can follow a KYC mismatch, an unverified address, a link to a flagged entity, or an intelligence input. A flag can hold up export benefits and slow customs clearance. The exact reason is often not displayed in detail, so you may need to write to the Regional Authority or file an RTI to obtain the recorded grounds. | ||
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| + | ==== Will an IEC suspension stop my goods at customs? ==== | ||
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| + | It can. The IEC is the basic identification number for import and export, and customs systems read its status when a shipping bill or bill of entry is filed. If the IEC is suspended, cancelled, or flagged, your shipping bill can be held or rejected, export benefits can be withheld, and consignments can be stuck at the port. Resolve the IEC status before booking time-sensitive shipments to avoid demurrage and detention costs. | ||
| + | |||
| + | ==== How do I respond to a DGFT suspension or show-cause notice? ==== | ||
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| + | Read the notice carefully and note the alleged ground and the reply deadline. File a written representation with the Regional Authority that issued it, answering each point with documents such as your IEC certificate, | ||
| + | |||
| + | ==== Can I use RTI to get my IEC unblocked? ==== | ||
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| + | No. RTI is a tool to obtain information and documents from a public authority, not to compel a substantive decision. DGFT is a public authority, so you can use RTI to obtain the suspension order, the recorded reasons, the file movement, or the status of your representation. But only the Regional Authority or DGFT acting under the Foreign Trade Policy can actually lift the suspension or remove the flag. The IEC update or representation is the real remedy. | ||
| + | |||
| + | ==== Do I need a consultant to fix an IEC problem? ==== | ||
| + | |||
| + | For a simple missed annual update you can usually fix it yourself on the DGFT portal in a few minutes. For a suspension, cancellation, | ||
| + | ===== DGFT import export code (IEC) correction online (2026) ===== | ||
| + | |||
| + | - **Step 1: What is IEC correction and how to do it online?** (a) IEC: (i) Import Export Code — mandatory for import/ | ||
| + | - **Step 2: Comparison table — IEC correction scenarios.** (a) Address change: (i) process: update on DGFT portal + upload proof, (ii) documents: address proof + utility bill, (iii) timeline: 1-7 days, (iv) example: address changed; updated; approved in 3 days, (b) Partner/ | ||
| + | - **Step 3: How to correct IEC online.** (a) Step 1: Login to DGFT portal — dgft.gov.in, | ||
| + | - **Step 4: E-E-A-T signals.** (a) Sources: dgft.gov.in, | ||
| + | - **Step 5: Practical tips.** (a) keep IEC number + PAN ready, (b) upload clear scanned documents, (c) check status regularly, (d) RTI with DGFT for delay, (e) Example: An exporter changed address; updated IEC; approved in 3 days; continued exports without disruption. | ||
| + | - **Step 6: Key provisions.** (a) Foreign Trade Policy 2023, (b) DGFT: IEC issuance + correction, (c) Regional Authority: processing, (d) PAN: linked to IEC, (e) RTI: file with DGFT. | ||
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| + | See [[https:// | ||
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| + | {{tag> | ||