Surrender of Import Export Code
As soon as the Indian markets opened up to the western markets, not only did we start importing a lot of products and goods but also began exporting a lot of indigenous products to other countries. So much so that importing and exporting itself became an industry of its own. Now there are businesses that are purely in the business of importing and exporting goods.
However, it goes without saying, that when we allow the free flow of goods within and without the country, we make it vulnerable to the inflow or outflow of certain undesirable items. Of course, there is the excise and customs department that ensures that everything that enters or leaves the shores of the country is thoroughly inspected, and scrutiny for businesses engaged in the import or export of products begins even before they can start doing business. Any organisation that wishes to involve in the import or export of goods is required to apply for an Import and Export Code.
Now surrender your Import Export License if you are not using it anymore or changed your business constitution.
Depends upon case to case basis
- Surrender of IEC Code
Business or Individual planning to Surrender their IEC Code
- Purchase of Plan
- Expert Assigned
- Share the details as requested
- Preparation of Report/Proposal.
- Import Export Code Certificate
- Import Export Code (DGFT) Portal
- Company Closure Details or Reason for Surrender of IEC
What Is An IEC Code And Why It Is Needed
An IEC is a ten-digit code issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce & Industry. Importers cannot import goods without this code and exporters cannot avail of the various benefits of the schemes that have been put in place, such as tax exemptions, from the DGFT, Customs, and Export Promotion Council. It is also needed for customs clearances, bank remittances, and by port authorities. There is no restriction on the type of entity that can apply for an IEC code as long as the applicant has proof of having registered the business as a separate legal entity with the relevant authorities.
Why Would One Surrender An IEC?
Change Of Business Objectives
This is the most common reason for the surrender of an IEC. A business may explore its prospects in the export/import route and may not find it viable or manageable. In such a case the business can surrender its IEC and apply for a change in the objectives of the business through the Registrar of Companies or any other relevant authorities.
Sale Of Business Or Business Unit
Another reason can be that the owners or the management of the business have decided to sell off its import-export business or its import-export arm. In this case, the person selling the business will have to surrender their IEC as the IEC will have to be reapplied for by the new owners in their own name. Besides, IEC is linked with the pan of the business proprietor or the PAN of the company. The IEC needs to be reapplied so that it can be linked to the PAN of the new owner.
Closure Of Business
There are thousands and thousands of reasons a company may have to decide to pull down the shutter on the business once and for all. So when a company engages in the import and export of products or services, it must intimate the DGFT and surrender the IEC as per due process
Steps For The Surrender Of IEC
A request for the online surrender of the IEC can be made on the DGFT website. Here are the steps to do so:
Log in to the DGFT’s official website at dgft.gov.in and choose the tab ‘Services’ from the homepage
From the drop-down menu on services, choose ‘IEC Profile Management. If you aren’t already logged in, you can also choose to directly reach this page using the link – https://www.dgft.gov.in/CP/?opt=iec-profile-management
On this page, you would be able to see several options such as the prerequisites and processes involved with the IEC. Scroll down the page until you see the option ‘Surrender IEC’
On this page, the website will ask you to log in with your registered email address and password. If you do not have an existing one, you can also create a new profile at this stage by filling in details such as your mobile number, pin code, district, state, and city.
After logging in, check in the relevant business details such as the PAN number, firm name, etc., and click on ‘surrender’.
The IEC, once successfully suspended, will be revoked for all future transactions.
When Can Your IEC Be Cancelled?
According to the rules framed by DGFT, one IEC would be issued against a single PAN number. Any proprietor can have only one IEC number, and in case there are more than one IECs allotted to a proprietor, the same may be surrendered to the regional office for cancellation. If this is not done, the department can impose penalties and cancel the code itself.
IEC registration is a bit more technical and tedious than other registrations because it is not as common and simple as the others. A person with an IEC has the licence to bring in or send out goods across the border. And that is why every process, including surrender, has to be thoroughly scrutinised. Therefore it is always advisable to seek the guidance of someone who has hands-on experience in applying for such licences and knows the technicalities of the regulations involved. If you have any other queries regarding Import Export Code (IEC) or need help with applying for one, get in touch with us now and we will ensure that our team of highly experienced experts assist you with your requirements.