Introduction
Many times it happens that when a person starts a business, he does all the necessary compliances and takes all the required registrations required to start the business. But in the course of business, it happens that one needs to close a business or liquidate a company or one is forced to close a particular department of business due to various factors. Among the various registrations required to be taken while starting a business, IEC registration is one of them if one intends to import or export goods or services. If one does not intend to use the IEC license further then it can be surrendered to the issuing authority. In this article, we will discuss all about IEC submissions.
What is IEC License?
Import Export Code (IEC Code in short) is a ten digit number issued by Directorate General of Foreign Trade under Ministry of Commerce and Industry to any bona fide person/company for import/export. Importers are not allowed to proceed without this code and if they do not have this code exporters cannot avail the export benefit from DGFT, Customs and Export Promotion Council.
What is an IEC surrender?
When an IEC holder voluntarily relinquishes his rights to use an IEC for any reason, it is called an 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 it rather than renew it every year.
Why is one required to surrender IEC license?
The following are the reasons that one should surrender IEC license:
- When an individual closes his/her business.
- When the IEC holder liquidates his/her company.
- When an IEC holder sells his/her business of import and export codes.
- When one stops the import-export division in the business.
- However, since IEC is a ten-digit code given on an individual PAN or a company’s PAN, one should not give the existing IEC number which is not linked to the PAN and apply the new code.
- Because the importer/exporter cannot reapply for IEC with the same PAN, even if the numerical IEC is surrendered/cancelled.
How to surrender IEC license online?
When an IEC holder wishes to surrender his IEC license online, he can do so by submitting an IEC Surrender online request at the DGFT website. Submit the documents and application for IEC Registration. Once the application is submitted, your IEC license will be surrendered and it will be canceled for all future transactions.
Documents and Details Required for IEC Surrender
The following are the documents required for IEC surrender:
- Registered Email Address and Password
- Name of the firm
- Place of business and address
- IEC Holder's PAN Card
- IEC License Number
- Original IEC certificate of enclosure
- A covering letter addressed to the Additional Director General of Foreign Trade
Important Note: Once the IEC is surrendered, the Issuing Authority will inform all concerned departments like RBI/Customs/Licensing authorities that the said IEC number has been deactivated.
Summary
Surrender of IEC license is a decisive step for individuals or companies that no longer require a license for import-export activities. By following the prescribed process and providing the necessary documents, an IEC holder can effectively surrender the license and avoid the need for annual renewal. This ensures compliance with regulatory requirements and prevents any potential future issues related to unused IEC licenses.
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