HOW TO SURRENDER AN IMPORT EXPORT CODE LICENSE?
What is an IEC License?
Import Export Code (in short IEC Code) is a ten-digit number granted by the Directorate General of Foreign Trade under Ministry of Commerce and Industry, to any bonafide person/ company for carrying out import/export. Importers are not allowed to proceed without this code and exporters can't take benefit of exports from DGFT, Customs, Export Promotion Council, if they don't have this code.
What is an IEC Surrender?
When the IEC holder voluntarily revokes his rights to use the IEC for whatever reason, it is said to be the IEC Surrender.
If the IEC License is no longer in use or the IEC holder does not intend to use the IEC license, it is advisable to surrender the same rather than renewing the same every year.
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.
When should you surrender IEC License?
Documents and Details required for IEC Surrender:
Step by Step Procedure for Surrendering IEC Code:
Step 1: Log in to the DGFT’s official website at dgft.gov.in and choose the tab ‘Services’ from the homepage
Step 2: 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
Step 3: 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’
Step 4: 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.
Step 5: After logging in, check-in the relevant business details such as the PAN number, firm name, etc., and click on ‘surrender’.
Step 6: The IEC, once successfully suspended, will be revoked for all future transactions.
Suspension of IEC And Surrendering of IEC:
In case of suspension, it is enforced by the DGFT, as opposed to a voluntary application for surrender. The DGFT officials can initiate the suspension of any IEC if they believe that it hampers trade relations of India with another country. This can only be done after giving the IEC holder an opportunity to represent his case. When any IEC number is suspended or cancelled, that person shall not be entitled to import or export any good except under a special license
Once your IEC is surrendered, the issuing Authority will inform all the concerned departments such as the RBI, Customs, Licensing Authorities that the said IEC Number has become inactive.
Copyright © 2019 - All Right Reserved