Update: This article has been updated since PayPal requires Purpose Codes and not an IEC code.
The Importer Exporter Code, or IEC in short, is normally required by manufacturers and companies for international trade but with this new RBI ruling, the hundreds and thousands of freelancers, programmers, web designers and small companies who depend on PayPal for foreign payment will also have to apply for an IE code.
How to Get an Importer Exporter Code Number?
IEC is a simple 10 digit code that is issued by the Ministry of Commerce and Industry and it looks something like this. I talked to a cousin who exports builders’ hardware to US and Europe and here’s what he told me on how one can apply for an Import Export Code Number.
The IEC application form is available for download on dgft.gov.in – just search for “Application Form for Issue Importer Exporter Code Number (IEC)” or use this direct link. You may also procure the the form from any of the regional offices of Director General of Foreign Trade.
Filling the form should be easy and you can skip Section C since its only for people who already have an IEC number. You’ll need a bank certificate, your PAN card copies, date of birth certificate and a Demand Draft of Rs 250 (please cross-check since the fee structure may have changed) drawn in favor of DGFT.
Once you’ve all the required documents, you can submit the application in person to your regional DGFT office or it can be sent through snail mail (like registered Speed Post). Just like the Passport application, you’ll be given a File Number and you may use it to check the current status of your application on dgft.gov.in.
If you are curious to know more, check this handbook [PDF] from the Ministry of Commerce and Industry, Government of India that talks in details about the various procedures, restrictions and Foreign trade policies.
How Long Does It Take to Get an IEC Number?
My cousin says that it took him about a week to get the IEC number and that the certificate was delivered to his address via registered post.
The IEC number is valid for life and so its just a one-time effort.
Is there a shortcut?
Unlike Passports, there’s no tatkal scheme for getting IEC numbers quickly.
That said, there are Import Export agents in every city (just search for “Import Export Code Consultants <your city name>”) that can help you in getting the IEC code for a fee but am not sure if you really need their service.
Export Code Number and your PayPal Profile
PayPal, according to an email that they have sent to all account holders in India, will add a new “Exporter Code” field on their website and once you fill that code, you’ll be able to withdraw funds from PayPal to your bank account in India.
The new field is not there yet but it should be up by March 3rd.
Find this article at: http://labnol.org/?p=12866
Reader Comments
You also need to take an envelope with you that has your address and adequate postage on it – that’s what they will use to mail you your IEC certificate.
You need a photo identification from your bank as well as signature verification.
Also take a few blank letterheads and all your company/concern stamps with you. As happens with every Government department in India, the guys at DGFT will pin point several irregularities in your application. And there will be “agents” who will urge you to use their services telling you it wont get done otherwise.
My advice is don’t pay any bribe or any commission to anyone. I declined that offer of an agent and the code was in my had in 15 days.
Written by Yash on 02.27.10
i m just 18 , can i get a IEC ??
Is it a easy process or lenghty ??
Written by Mridul on 02.27.10
I just checked the form. What Bloggers can fill in when it comes to Type of Exporter?
Written by Ashish Mohta on 02.27.10
i m not sure i think if we get IEC code then business come under export- import laws. is there any problem when we file income tax.
Written by ravindra on 02.27.10
Thanks, very helpful.. I never thought that it would so easy to get a IEC code.
Written by savvy on 02.27.10
Amit that was really a very quick post to pacify all the paypal users of India..Now will have to apply one just after Holi to withdraw money. Otherwise I am stuck ;)
Written by Anshika on 02.27.10
Thanks for the post Amit, I was wondering about that mail I got today.
On the DGFT site, where it says how to apply, its goes to some sify site..
Now the certificate that you showed in this post, that is a company. How do you apply is you are just an individual ?
Written by Alfred on 02.27.10
what about the personal use? it do need a Firm name in form.
Written by Aniruddh on 02.27.10
Hi,
I have three questions. First question, what exactly is a bank certificate? Any idea? And can individuals who don’t have a registered business apply for an IE code? Is it necessary to have a current account to apply for an IE code? Hope you can shed some more light on this.
Thanks,
– Naif
Written by Naif Amoodi on 02.27.10
thnx for this gr8 info .. i was really in need of this.. will begin the procedure after 3rd march ..
thnx again Amit
Written by Jaspal on 02.27.10
@Naif – You don’t need to have a current account or a business to get IEC or bank certificate. You need to get your photo and signature verified from your bank.
Written by Yash on 02.27.10
Dear Amit,
Please tell us how an individual can obtain an IEC code. Because most of freelancers in India are working as individuals.
Thanks.
Written by Rajpal Singh on 02.27.10
Is this applicable only for those who use PayPal? What about those who use methods like Xoom, city bank etc. to receive money from U.S (or other foreign countries)? Should they also get the IE code?
Written by Remesh on 02.27.10
Timely info Amit. Great thinking :)
Written by Arun Basil Lal on 02.27.10
Thanks Amit. Very informative post (as usual)!
What most of us want to know is this:
1. As individuals, we don’t have a firm/company. Can we get IE Code.
2. Do we need a current account. (That might cost Rs.5000 by the way, as minimum deposit)
3. Can we register as a Trust instead (It costs only Rs.1000 for current account for Trusts in some banks). Can Trusts be exporters?
4. Can the registration be done online completely?
Regards
Daniel
Written by Daniel on 02.28.10
Individuals can acquire IE Code. I spoke with the office of DGFT directly because like others, I too was being misguided. There are agents of all hues and they all do some scare mongering for you to use their services. Speak directly to the DGFT office and you will realise,
1 – You just need a bank account (Savings a/c is just as well) into which you will get your forex earnings
2 – You do NOT need to have a company or company letter head or stuff
3 – You just need to be patient and follow the instructions of DGFT to get your IECode quickly. Max – 7 days from start to finish :)
Written by Jerson on 02.28.10
this was ridiculous for a normal blogger getting around $100 per month. how can he supposed to do all this to get that little amount. cheap govt tricks….
anyways thank you amit…
Written by sahith on 02.28.10
the other day when I received email from Paypal that mentioned the addition of “Exporter Code” field in PayPal accounts I was wondering how to get the code in first place.
Thanks for sharing this useful info on How to Get an Exporter Code.
Written by ramaraobobby on 02.28.10
This is a case of the Government abusing its own bureacracy..If I do freelancing, am I am an exporter? Wait, I can also do freelancing and earn money from inside India right? That means that not all money I withdraw from Paypal is money from abroad..
That means they should simply be asking for my PAN Card number and not an IEC..I am not an exporter!
Written by Anand Srinivasan on 02.28.10
Thanks for the information. BTW what if a company is using two or more bank accounts (with different banks) to withdraw funds from PayPal? Do they need to apply for separate IECs for every bank? Please clarify this.
Thank you.
Vivek
Written by Vivek on 03.01.10
Why are you spreading misinformation and panic? Paypal never said that you need IEC code. What they said was that you need a purpose code.
Please refrain from misleading people.
Thank You.
Written by Jay on 03.01.10
Thank you for posting this. Much appreciated.
In response to the ‘government misusing its rights’ argument, all funds that travel in and out of the country have to be monitored by the government.
If you are an individual freelancer and provide services to anyone outside India, you ARE an exporter. Namely, a service exporter.
If you’re totally limiting your work to India BUT you’re being paid via PayPal, you will still need to get an IEC because PayPal is in the US and inflow of money from their is part of foreign exchange.
Sagar
Written by Sagar on 03.02.10