The Foreign Trade Policy (FTP) makes importing and exporting goods and services easier, safer, and smoother for all businesses. The DGFT has updated Para 2.08 of the Handbook of Procedures (HBP) 2023 to improve the Importer Exporter Code (IEC) process. The IEC is a special code given to every business that trades internationally. Before, businesses had to fill out multiple forms and submit many documents, which was slow and confusing. 

The new changes remove extra steps and make the process fully online. The system now automatically checks details with banks, GST, PAN, and other government databases. The update benefits all importers and exporters, making trade smoother, reducing errors, and helping businesses operate transparently in the global market.

What Are the Key Amendments to HBP 2023, Para 2.08?

DGFT has introduced several important changes to Para 2.08 to simplify the IEC application process and make it fully digital. These changes apply immediately to all new IEC applicants and to those updating existing IECs. The focus is to reduce paperwork, improve online verification, and ensure that only genuine businesses get their IEC.

1. Form Merger and Deletion

2. Amendment to Para 2.08(c) – Document Submission

Earlier, users had to upload many documents with the IEC application. Now, DGFT has connected the IEC portal with government databases such as:

• PAN Database
• GST System
• Banks and Financial Institutions
• Ministry of Corporate Affairs (MCA)

The portal automatically validates the information online. Documents will be required only if the system fails to cross-verify the details.

3. Amendment to Para 2.08(d) – Post-Verification of IEC

DGFT Regional Authorities will now check and verify IEC details after issuing the code. Verification guidelines will be updated and shared by DGFT whenever needed. Authorities may verify:

• Business identity and address
• Bank account validity
• PAN and GST status
• Business activities

Important Declarations in ANF-2A

Applicants must certify that:

• The business has no penalties under Customs, GST, FEMA, or Foreign Trade laws.
• No director/partner/proprietor is part of any entity on DGFT’s Denied Entity List (DEL).
• The business has not applied for another IEC elsewhere.
• All information provided is correct, and documents are authentic.

These declarations ensure only genuine and compliant businesses obtain IECs.

New Online IEC Application Process – Step-By-Step Guide

The IEC application is now completely online, paperless, and automated. Digital verification reduces errors and speeds up approvals. The system validates information in real time from government databases. Step-by-Step Process:

1. Visit the DGFT website.
2. Click Apply for IEC
3. Create a login using PAN, email, and mobile OTP
4. Fill the ANF-2A form online
5. Enter business details, GST number, bank information, and owner details
6. Upload documents only if requested by the system
7. E-sign the application using Aadhaar OTP
8. Pay the fee online and submit
9. Download the IEC certificate after approval

Post-Verification of IEC by Authorities

After issuing an IEC, DGFT may check the business to make sure all the information provided is correct. Authorities can ask for extra documents, such as:

• GST registration certificate
• Bank account details
• Proof of business address
• PAN card details
• Identity documents of directors, owners, or partners

It is very important for businesses to keep their information updated on the DGFT portal. Wrong or outdated details can stop imports or exports. This post-verification helps make sure that only real and genuine businesses take part in international trade.

Impact of the Amendment on Importers & Exporters

The impact of the amendments on importers and exporters will be:

• Easier IEC Application:  Now, businesses need to fill out only the revised ANF-2A form. There is no need to fill out multiple forms. This makes the process simple and saves time for both new and existing importers and exporters.
• Faster Approval and Less Paperwork:  All information is collected in one single form. With fewer documents to upload, DGFT officials can approve the applications faster. This saves businesses from unnecessary delays, and they can proceed with their work at a faster pace.
• More Accurate Data and Better Compliance:  The system automatically checks PAN, GST, and bank details. This ensures that businesses provide correct information from the start. Accurate data helps maintain clean and reliable records.
• Post-Verification by Authorities:  After issuing the IEC, Regional Authorities may check the details again. This stops fake registrations and encourages businesses to keep their records updated and correct.
• Transparent and Secure Process:  Digital verification makes the system open and safe. It reduces the chance of fraud or misuse of IECs. Authorities can easily monitor trade activities, making the process secure for all.
• Easier Business Operations:  The process is now fully online, simple, and quick. Small businesses and startups benefit the most, as it is easier to enter global markets and trade internationally.

Conclusion

The recent changes to Para 2.08 of HBP 2023 have greatly improved the IEC application process. By combining ANF-1A into ANF-2A, DGFT has made the IEC form much simpler and easier to fill out the form online. This reduces the amount of paperwork for businesses. 

The system now automatically checks details using PAN, GST, and bank records, which makes approvals faster and more accurate. After giving the IEC, the Regional Authorities may verify the information again to make sure only real businesses get and keep their code. 

These changes save time, prevent mistakes, and make the process clear and transparent for importers and exporters. The online system is now safer, quicker, and very easy to use. It marks a significant step toward a fully digital, reliable, and transparent foreign trade system in India.