IEC Deactivated: How to Activate It Again in 7 Steps
A deactivated IEC is activated again when you complete the pending update online on dgft.gov.in. You do not apply for a new code and you do not visit a DGFT office. Log in, update or confirm your details, sign, and pay the Rs 200 late update fee. Suspended or cancelled codes follow a different route.
- Deactivation usually means you missed the April to June yearly update, or did not clear a risk flag DGFT raised on your IEC.
- The fix is the update itself. The Foreign Trade Policy says a deactivated IEC may be activated on its successful updation.
- DGFT's fee schedule lists Rs 200 for an annual update done after June.
- Suspension and cancellation are different. They need a separate request on the DGFT portal.
- One PAN can hold only one IEC, so applying for a fresh code is not an option.
In this guide
First, which status do you have?
Your courier says "IEC inactive". Your customs broker says "IEC not valid". Before you fix anything, find out what DGFT actually shows. Handbook para 2.09 says any IEC's details can be checked on the DGFT website under Services, View IEC Related Details. Enter your IEC and read the status.
| Status | Usual reason | How you fix it |
|---|---|---|
| Deactivated | Yearly update not done between April and June, or a flagged risk not addressed | Complete the update online; the code is activated on success |
| Suspended | Action by DGFT, or you surrendered the code | Request revocation of suspension on the DGFT portal |
| Cancelled | Cancelled by the competent authority | Request revocation of cancellation; this goes to your Regional Authority |
| On the Denied Entity List | Unmet export obligation or a penalty | Clear the dues, then request removal from the list |
Most small sellers who find their code "inactive" are in the first row. The rest of this article is about that case. If you are in rows two to four, talk to someone who handles DGFT matters, because those turn on facts specific to your file.
Why does DGFT deactivate a code at all?
Para 2.05(d) of the Foreign Trade Policy 2023 asks every holder to update the IEC electronically each year in April to June, or confirm it if nothing changed. Para 2.05(e) then says an IEC not updated in that period shall be deactivated. Para 2.05(f) adds a second route: if the system flags your IEC for scrutiny and you do not address the risk in time, it is deactivated too.
The idea is simple. DGFT would rather pause a code than let shipments move under details nobody has confirmed. Deactivation is a pause, not a penalty on your business. Handbook para 2.10 keeps it separate from suspension and cancellation, and your IEC still has permanent validity.
How to reactivate a deactivated IEC: step by step
- Log in on dgft.gov.in with the user linked to the IEC. Lost the login? Use the portal's recovery with the mobile and email on record. If both have changed, you will need the IEC linked to a new user with a digital signature.
- Check your dashboard for any alert or flagged item, and answer it first if there is one.
- Go to Services, IEC Profile Management, and choose the option to update or modify the IEC.
- Review every section. Fix the address, bank account, partners or directors if any of them changed, and upload proof.
- Pay the late update fee shown at the payment step. DGFT's schedule lists Rs 200.
- Sign with Aadhaar e-sign of a proprietor, partner or director whose name and PAN are on the IEC, or with a digital signature certificate, and submit.
- Check the status again under View IEC Related Details. DGFT's trade notices have said a successful update reactivates the code without manual intervention and passes the status to customs.
If the update needs an officer's approval, for example because a key detail changed, the status changes only after approval. Tell your courier or broker the date you submitted so they can plan.
A worked example
Imran sells brass decor through a marketplace export programme from Moradabad. He skipped the yearly update in 2026. In September a Rs 1,20,000 consignment is held because his IEC shows deactivated.
He checks the status, logs in, finds his bank account on record was closed last year, and changes it with a new cancelled cheque. He pays Rs 200 and signs with Aadhaar e-sign. The code shows active again, and the courier files the shipment once it does. His total government cost is Rs 200. His real cost is the days the stock sat idle, and the storage charge the courier billed for holding it.
The closed bank account was a second lapse. Handbook para 2.14 expects a new bank account to be updated on the IEC within 30 days of the change. One review fixed both.
The mistake people usually make
They try to apply for a new IEC. It does not work. Handbook para 2.12 allows only one IEC against a single PAN, and your IEC is your PAN. The application either fails or creates more confusion. The old code is what you reactivate.
The second mistake is signing. The portal checks that the person signing is on the IEC record. A proprietor whose Aadhaar name is spelt differently from the PAN, or a director who resigned two years ago, gets stuck at this step. Correct the record first, or use a digital signature of someone listed.
The third is waiting for the next April. There is no need. You can update and reactivate any time the code is deactivated.
When should you get help?
Do it yourself if you have the DGFT login and your details are mostly unchanged. Get help if the login is lost and the registered mobile is gone, if the people on the IEC have changed, or if the status is suspended, cancelled or on the Denied Entity List. For those, a professional who deals with DGFT saves days.
And once it is active again, set a yearly reminder. Our guide to the IEC annual update explains the April to June window so this does not happen twice.
Sources
- Foreign Trade Policy 2023, Chapter 2, para 2.05(d), (e) and (f) (content.dgft.gov.in) (checked 12 Nov 2026)
- Handbook of Procedures 2023, Chapter 2, paras 2.09 to 2.14 (content.dgft.gov.in) (checked 12 Nov 2026)
- DGFT Public Notice 02/2025-26 dated 15 April 2025, Appendix 2K row 7(B) (content.dgft.gov.in) (checked 12 Nov 2026)
- DGFT portal: IEC profile management, including revocation requests and removal from the Denied Entity List (dgft.gov.in) (checked 12 Nov 2026)
How AprilTax can help
AprilTax's Tax Experts file new IEC applications with DGFT at a fixed fee of Rs 999, plus the Rs 500 government fee. If you are setting up exports for a new business with its own PAN, you can start with one online form. See IEC code application with AprilTax.
Frequently asked questions
Why was my IEC deactivated?
How do I reactivate a deactivated IEC?
What is the fee to reactivate an IEC?
Can I apply for a new IEC instead?
How do I check whether my IEC is active?
Is a deactivated IEC the same as a cancelled IEC?
Do I have to wait until next April to reactivate?
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