IEC is a code required by business who are involved in imports and exports in India.
Under these circumstances importer exporter code is not required:
Any Person who is involved in import and export of goods and services in India must get a importer exporter code (IEC).
To Get IE code, a copy of PAN Card, proof of address of business, constitution of the business and a letter from the banker is required.
Generally it takes 3 to 7 days to get the IE code after the submission of all required documents and application.
There is no penalty on not having an IE code but import and export is not possible without an IE code.
The IE code is just a code. Once you have it, you can begin importing and exporting. You don't need to file the transactions done under this code or pay any taxes.
An IE code is valid for lifetime and thus it doesn't require a renewal.