IEC code renewal is important for many reasons. Let’s look at the main ones:
1. Mandatory by Law
The government made it compulsory to renew your IEC every year. If you skip it, your code will be deactivated. This rule helps the authorities keep updated records of businesses.
2. Avoid Business Disruption
If your IEC becomes inactive, your shipments might get stuck at customs. Banks may also stop processing your international payments. This could harm your business operations and reputation.
3. Keep Business Info Updated
During renewal, you can update your business name, address, contact details, or bank info. This ensures that all your documents match, which helps avoid confusion or delay in trade.
4. Required for Benefits
To claim export incentives, subsidies, or tax refunds from the government, your IEC must be active and up-to-date.