23rd February 2021

To All Members,

Sub: Amendment of Importer-Exporter Code (IEC) related provisions under Chapter – 1 and Chapter -2 of Foreign Trade Policy 2015-20 

Dear All,

A notification no. 58/2015-20 has been issued by the Ministry of Commerce & Industry, Government of India on 12th February 2021 making amendments in IEC related provisions under Chapter -1 and Chapter -2 of Foreign Trade Policy 2015-20. (Copy enclosed)

A clarification was sought from our Advisor Mr. S.C. Kamra, Advocate about its relevancy on our members.

Clarification received from Mr. Kamra is placed below which is self-explanatory. According to him “The amendments mentioned at sr. no. 3 and 4 above are also relevant for tour operators holding IEC certificates. They need to update IEC particulars at the GST portal in April 2021 and so on annually and even if there is no change in the particulars, confirmation needs to be filed online at the DGFT portal in April 2021 and so on”.

 

Members are, therefore, advised to adhere to the notification and update their IEC particulars at the GST Portal in April 2021 and so on annually, even if there is no change in the particulars.

Please click the below link to download the attachment.

23.02.2021_Notification_58_Date_12-02-2021_English.pdf

Thanks and regards,

Rahul Chakravarty

COO

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Dear Sir,

Ref. your email dated 19.02.2021 and our telecom discussion, we would like to apprise you that vide notification No. 58/2015-2020 dated 12.02.2021, the DGFT has amended the provisions of FTP pertaining to issuance and updation of Importer-Exporter Code (IEC). These amendments are briefly explained as under along with their relevance for tour operators: -

 

  1. IEC is mandatory for export / import from / to India. However, for service exports such as services of tour operators, hotels, and other service providers, IEC is necessary only when the service provider is taking benefits under FTP.  This provision was already there in para 2.05 of the FTP 2015-2020.
  2. Since the Inbound tour operators earning foreign exchange are taking the benefit of duty credit scrips such as Service Exports from India Scheme (SEIS), they need to hold IEC as a mandatory requirement.
  3. It is now provided in para 2.05 that an IEC  holder has to ensure that details in its IEC certificate are updated electronically every year, during the April-June period. In case there are no changes in IEC details, the same also needs to be confirmed online at the DGFT web portal (https//www.dgft.gov.in).
  4. In case IEC is not updated within the prescribed time, the same shall be deactivated by the DGFT portal. The same can be activated only upon successful updation online, without prejudice to any action taken by the DGFT for violation of FTP provisions.
  5. The amendments mentioned at sr. no. 3 and 4 above are also relevant for tour operators holding IEC certificates. They need to update IEC particulars at the GST portal in April 2021 and so on annually and even if there is no change in the particulars, confirmation needs to be filed online at the DGFT portal in April 2021 and so on.

 

We trust you will find the above changes in FTP provisions in order and also their relevance for tour operators from a compliance point of view.  You may update the tour operators accordingly.

Thanks

S.C.KAMRA

Advocate