{"id":32748,"date":"2021-07-12T17:25:34","date_gmt":"2021-07-12T11:55:34","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=32748"},"modified":"2021-07-12T17:26:07","modified_gmt":"2021-07-12T11:56:07","slug":"surrender-of-iec-license","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/surrender-of-iec-license\/","title":{"rendered":"An Overview on Surrender of IEC License"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The increase of competition in the market has made everyone to look for different ways to grow their business beyond the domestic limit. For doing business globally it is obligatory to conform to several laws and procedures and it is necessary to get different registration and license. The <a href=\"https:\/\/corpbiz.io\/iec-registration\"><strong>IEC registration<\/strong><\/a> is one of the important prerequisite when the business involves importing or exporting from India. It is also known as Importer- Exporter Code where the business dealer gets the IEC (Import Export Code)  license. Similarly, if the dealer wishes to discontinue with the business then he can carry out the surrender of IEC license to the issuing authority. In this article, we shall deal in detail on surrender of IEC License.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/surrender-of-iec-license\/#Why_is_IEC_license_required\" >Why is IEC license required?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/surrender-of-iec-license\/#What_is_the_Benefit_of_IEC_license\" >What is the Benefit of IEC\nlicense?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/surrender-of-iec-license\/#What_is_the_meaning_of_Surrender_of_IEC\" >What is the meaning of Surrender of IEC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/surrender-of-iec-license\/#What_are_the_reasons_behind_the_surrender_of_IEC\" >What are the reasons behind the surrender of IEC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/surrender-of-iec-license\/#What_is_the_method_for_surrender_of_IEC_online\" >What is the method for surrender of IEC online?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/surrender-of-iec-license\/#What_are_the_documents_required_for_the_Surrender_of_IEC\" >What are the documents required\nfor the Surrender of IEC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/surrender-of-iec-license\/#When_can_the_IEC_be_cancelled\" >When can the IEC be cancelled?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/surrender-of-iec-license\/#What_is_the_difference_between_surrender_of_IEC_and_suspension_of_IEC_License\" >What is the difference between\nsurrender of IEC and suspension of IEC License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/surrender-of-iec-license\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_is_IEC_license_required\"><\/span>Why is IEC license required?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IEC (Import\nExport Code) license is obligatory for anyone planning to start their import or\nexport business worldwide. It is a license issued by the DGFT (Director General\nof Foreign Trade) on registration. IEC license is a 10-digit code with a\nvalidity of lifetime for dealing with the business during import or export of\ngoods. <\/p>\n\n\n\n<p>This IEC license\nacts as a precondition for Importers and they are not allowed to proceed\nwithout this code. Likewise, even the exporters are not allowed to take any\nbenefit of export from DGFT, Export Promotion Council or customs if they are\nnot having the IEC license. Few of the situations where IEC license is required\nare given below:<\/p>\n\n\n\n<ul><li>IEC license is required by the customs authorities whenever an\nimporter has to clear his shipments from the customs.<\/li><li>The bank demands for the IEC code whenever an importer sends money\nabroad through banks on his business dealing.<\/li><li>The customs port asks for IEC code when an exporter has to send his\nshipments.<\/li><li>IEC code is required by the banks whenever an exporter gets money in\nany foreign currency directly into his bank account.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Benefit_of_IEC_license\"><\/span>What is the Benefit of IEC\nlicense?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are many benefits of obtaining the IEC registration. Few of the benefits of IEC license are:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/07\/What-is-the-Benefit-of-IEC-license.png\" alt=\"Benefit of IEC license\" class=\"wp-image-32771\" width=\"528\" height=\"527\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/07\/What-is-the-Benefit-of-IEC-license.png 998w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/07\/What-is-the-Benefit-of-IEC-license-150x150.png 150w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/07\/What-is-the-Benefit-of-IEC-license-300x300.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/07\/What-is-the-Benefit-of-IEC-license-768x767.png 768w\" sizes=\"(max-width: 528px) 100vw, 528px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">International Market Reach<\/h3>\n\n\n\n<p>&nbsp;On getting the IEC registration and availing\nthe IEC license, the business dealers can easily expand their business globally\nand can have international customers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Primary document to deal globally<\/h3>\n\n\n\n<p>IEC acts as a\nprimary document to deal with import and export of goods globally.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Registration online<\/h3>\n\n\n\n<p>The registration\nprocess for IEC is very easy and it is done online with the help of government\nrecognized websites.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Lifetime Validity<\/h3>\n\n\n\n<p>The IEC registration\nis a permanent registration and it has a validity of lifetime. The validity of\nthe license continues till the existence of the business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">PAN Based Registration<\/h3>\n\n\n\n<p>The IEC\nregistration is done based on the permanent account number of the given\nbusiness enterprise.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Simple Documents Required<\/h3>\n\n\n\n<p>The Registration\nof IEC requires simple documents like Pan card, registered office address,\napplicant\u2019s address proof, branch office address.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">No Compliance<\/h3>\n\n\n\n<p>The benefit that\nthe IEC holder gets is that he is not burdened for fulfilling any particular\ncompliance obligation like return filing or annual filing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Restricts the dealing in illegal Goods <\/h3>\n\n\n\n<p>The most\nimportant benefit that follows after getting an IEC registration is that it\nrestricts the dealing of illegal goods as because the registration requires\naccurate and authentic information. The department issues IEC registration only\non getting complete authentic information which ensures that the dealing is\nconforming to the laws and are legal and valid.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">No Annual Maintenance<\/h3>\n\n\n\n<p>After the IEC is\nissued once, it remains valid for a lifetime hence there is no further charges\nrequired for annual maintenance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Benefits of Scheme <\/h3>\n\n\n\n<p>Both the importers and exporters can avail these huge benefits after getting IEC registration. The business organization that is registered with IEC can utilize the benefits in the form of subsidies or otherwise as acknowledged by the DGFT, customs Export promotion council or such other authorities. The business entities can also claim the reimbursement of paid taxes while exporting the goods. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Legally Clean<\/h3>\n\n\n\n<p>After the IEC code is generated once, it becomes legal to export or import any product. Hence, any such transaction done as cross-border business gets easy and hassle free making it legally valid for all such further transactions.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/advantages-of-iec-registration-in-india\/\">Advantages of Obtaining IEC (Import Export Code) Registration in India <\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_meaning_of_Surrender_of_IEC\"><\/span>What is the meaning of Surrender of IEC?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After fulfilling\nall the requirements of IEC registration and starting with the business, there\ncan be various situations in which the owner would like to discontinue with the\nbusiness transaction of import and export globally.&nbsp; Due to prevailing circumstances the business\ndealer would like to close the business or would decide on winding up the\ncompany or it may happen that the a particular division of such business needs\nto be closed due to various factors. In such cases, the dealer decides to go on\nwith the surrender of IEC License. When the IEC holder of his own accord\nrevokes his rights to use the IEC for whatsoever reason it is said to be the\nsurrender of IEC.<\/p>\n\n\n\n<p>Hence, it is\nalways advisable to the business organizations to go for surrender of IEC when\nthey are no more using the license or when they intend to discontinue with the\nuse of same.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_reasons_behind_the_surrender_of_IEC\"><\/span>What are the reasons behind the surrender of IEC?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There can be\nvarious reasons behind the surrender of IEC but few of the specific reasons are\nas given below:<\/p>\n\n\n\n<ul><li>When the business dealer decides to close down his\nbusiness. <\/li><li>When the IEC holder decides to go for winding up his\nCompany. <\/li><li>When the IEC holder decides to sell the business of Import\nand Export Code. <\/li><li>When the business dealer decides to close the division of\nthe Import export in the business. <\/li><\/ul>\n\n\n\n<p>It is important\nto mention that the IEC is a ten-digit code given on the basis of an individual\nPAN or on a company PAN. Hence, the business owner should not surrender the\nexisting IEC number which is not linked with the PAN and apply for a new one.\nThis is due to the reason that the Importer or Exporter will not be able to\napply again for the IEC license with the same PAN even if he goes for\ncancellation or surrender of IEC.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_method_for_surrender_of_IEC_online\"><\/span>What is the method for surrender of IEC online?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Whenever\nany IEC holder decides to surrender his IEC License, he can do so by filing an\nonline request for surrender of IEC on the&nbsp;official website of DGFT. The\nbusiness dealer can submit the documents that are required for the surrender of\nIEC together with the application for registration of IEC. After the\napplication gets submitted, it shall be considered that the surrender of IEC\nonline has been completed and it shall be revoked for all the future\ntransactions.<\/p>\n\n\n\n<p><em><strong>The process for surrender of IEC is as given below:<\/strong><\/em><\/p>\n\n\n\n<p><strong>Step 1<\/strong><\/p>\n\n\n\n<p>The\nlicense holder will have to log in to the official website of DGFT and then\nfrom the homepage he shall select the tab \u2018Services\u2019 to proceed further.<\/p>\n\n\n\n<p><strong>Step 2&nbsp;<\/strong><\/p>\n\n\n\n<p>From\nthe given drop-down menu that will appear on the services, \u2018IEC Profile\nManagement\u2019 shall be selected. If the user is not logged in, he can wish to\ndirectly reach this page using this link \u2013 <a href=\"https:\/\/www.dgft.gov.in\/CP\/?opt=iec-profile-management\"><em>https:\/\/www.dgft.gov.in\/CP\/?opt=iec-profile-management<\/em><\/a><em>&nbsp;<\/em><\/p>\n\n\n\n<p><strong>Step\n3<\/strong><\/p>\n\n\n\n<p>In this page, there will be many\noptions like the processes and prerequisites involved with the IEC. After\nscrolling down the page there, the user shall find the option \u2018Surrender of\nIEC\u2019.<\/p>\n\n\n\n<p><strong>Step\n4<\/strong><\/p>\n\n\n\n<p>Further on this page, the website\nshall ask over for the user\u2019s registered email address and the password\nrequired to log in.<\/p>\n\n\n\n<p>&nbsp;In case the user does not already have his\nexisting registered email id, he should create his new profile at this stage by\nfilling all the required details like mobile number, contact details, district,\ncity, and the state.<\/p>\n\n\n\n<p><strong>Step\n5<\/strong><\/p>\n\n\n\n<p>After completing the process of\nlogging in, the user is required to check the relevant business details like\nthe PAN number, company name, etc., and then he shall click on \u2018surrender\u2019 for\nthe surrender of IEC.<\/p>\n\n\n\n<p><strong>Step\n6<\/strong><\/p>\n\n\n\n<p>Thus, the surrender of IEC shall\nsuccessfully suspend the IEC license and shall revoke it for all future\ntransactions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_documents_required_for_the_Surrender_of_IEC\"><\/span>What are the documents required\nfor the Surrender of IEC?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The documents that is required for the surrender of IEC is given as below:<\/strong><\/em><\/p>\n\n\n\n<ul><li>The registered email address and the given password.<\/li><li>The name of the Company.<\/li><li>The detailed location and address of the given business.<\/li><li>The PAN Card of the IEC Holder.<\/li><li>The given IEC License Number.<\/li><li>The original IEC certificate shall be enclosed.<\/li><li>The Covering letter that is addressed to the Additional Director\nGeneral of Foreign Trade shall be enclosed.<\/li><\/ul>\n\n\n\n<p>It is important\nto note that once the surrender of IEC is done, the issuing authority shall\ninform all the respective departments such as the RBI, the Customs or Licensing\nauthorities or other such concerned authorities regarding the surrender of IEC\nnumber and that it has become inoperative.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_can_the_IEC_be_cancelled\"><\/span>When can the IEC be cancelled?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the\nDGFT framed rules, only one IEC shall be issued against a single PAN number.\nAny business owner can have only one IEC number, and in case if he is having\nmore than one IEC or more than one IEC is allotted to the proprietor, the same\nshall be surrendered to the regional office for getting it cancelled. If the\nbusiness dealer does not comply with the same then the department can impose\npenalties and direct for cancellation of the code.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_surrender_of_IEC_and_suspension_of_IEC_License\"><\/span>What is the difference between\nsurrender of IEC and suspension of IEC License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The difference between the surrender of IEC and suspension of IEC license is as follows:<\/strong><\/em><\/p>\n\n\n\n<ul><li>In case of suspension of the license, it is the Directorate General\nForeign Trade who enforces it. In case of surrender of IEC, it is a voluntary\napplication for surrender by the business dealer.&nbsp;<\/li><li>The suspension of IEC can be initiated by the officials of the DGFT in\ncase they think that it is hampering the trade relations of India with other\ncountries. The holder is given an opportunity to represent his case before the\ndirection of suspension is given in such case.<\/li><\/ul>\n\n\n\n<p>In case of\nsurrender of IEC, it is the voluntary decision of the IEC holder to give up the\nlicense due to various reasons like closure of business etc.<\/p>\n\n\n\n<ul><li>After the cancellation or suspension of IEC code, the business dealer\nshall not be allowed to deal with the importation or exportation of any goods\nexcept with a special license.<\/li><\/ul>\n\n\n\n<p>In case of\nsurrender of IEC license, after the license holder surrenders the license he\nshall not be eligible to deal with the business any further.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IEC license is\none essential requirement for all the business dealers planning to start their\nbusiness for importing and exporting the goods internationally. Therefore, as\nit is important to get the registration done before starting with the\ntransaction globally it is equally important to follow the procedure when the\nbusiness dealer feels that he is done with such business. Hence, it becomes\nimperative on the part of the business dealer to decide on surrender of IEC\nlicense when he feels that he no longer requires the use of the IEC license. <\/p>\n\n\n\n<p>Thus, the business dealers has the option to go for voluntarily surrender of IEC by following the due process of law.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/what-is-the-iec-registration-process-in-india\/\">What is the IEC Registration Process in India? <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The increase of competition in the market has made everyone to look for different ways to grow their business beyond the domestic limit. For doing business globally it is obligatory to conform to several laws and procedures and it is necessary to get different registration and license. The IEC registration is one of the important [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":32770,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[1856],"acf":{"service_id":"16"},"authorName":"Kandarp Vanita","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image_2021_02_01T09_09_44_024Z.png","authorDescription":"Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents &amp; dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.","postViews":5807,"readingTime":7,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/32748"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=32748"}],"version-history":[{"count":23,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/32748\/revisions"}],"predecessor-version":[{"id":32773,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/32748\/revisions\/32773"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/32770"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=32748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=32748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=32748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}