How to get IEC (Importer-Exporter Code) in India and How to add IEC code to PayPal

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PayPal users in India have been struggling with their online payments after the service had suspended its transactions in India. PayPal had announced officially that it would stop allowing payments to be sent to or from India. To add to their woes withdrawals from PayPal to local bank accounts were also disabled. After the recent turn of events, PayPal team announced that they will resume local bank transfer in India from 3rd March. Now PayPal account holders will be able to withdraw funds to Indian local banks provided that they have an IEC Code.

There are several companies, which depend on PayPal for foreign payment. In addition, there are several freelancers, programmers, web designers and small companies that use PayPal for foreign payment. According to new RBI rulings RBI issued a new ruling that requires all the PayPal users using the service for foreign payment to have an Export code or Import Export code [IEC].

Export code or Import Export code [IEC]  is a 10 digit numeric code issued to the Indian Companies by the Director General of Foreign Trade , Ministry of Commerce, Government of India.

Here are instructions that you need to follow to get the IEC code

• In order to apply for the IEC code you need to download an application from dgft.gov.in. The application is available for download here Application Form for Issue Importer Exporter Code Number.   The IEC application form will also be available in the regional offices of Director General of Foreign Trade.

• Fill the form properly (leave the Section C its for people who already have IEC).

• Keep important documents such as PAN card copy, bank certificate, Date of Birth certificate. It requires a Demand Draft of Rs. 250 (Please verify the price of DD from local DGFT office.)

• Submit the completed application to DGFT office.

You will receive a File Number that you use to check the current status of your application on dgft.gov.in.

For more information about IEC you can search the handbook by Ministry of Commerce and Industry, Government of India.

How to add IEC code to PayPal?

According to PayPal the Indian users will have to add a new Export Code field on their website. In order to request a withdrawal the user will have to enter the IEC code in the field entitled Export Code. The information will help Indian companies to identify the nature of cross-border merchant transaction.