Many times it happens when one starts a business, fulfills all the necessary compliances, takes all the necessary registration required to start a business. But during the course of business, it happens that one needs to close a business or wind up the company or one is forced to close a particular division of the business due to various factors. Amongst the various registration that one requires to take while starting a business, IEC Registration is one of them if one intends to import or export goods or services. If one does not further intend to use the IEC License then the same can be surrendered with the issuing authority. In this article, we will discuss all about IEC surrender.
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 whatsoever 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.
Why does one require to surrender IEC License?
- When one closes down his / her Business.
- When the IEC holder winds up his / her Company.
- When the IEC Holder sells his / her business of Import and Export Code.
- When one closes the division of the Import export in the business.
- However, As The IEC is a ten-digit code granted on the individual PAN or company PAN, One should not surrender an existing IEC number that is not linked with the PAN and apply a new one.
- As the Importer / Exporter shall not be able to apply again for IEC with the same PAN even if he gets numeric IEC surrendered/canceled.
How to surrender IEC License online?
When an IEC Holder wishes to surrender his IEC License online, he can do so by filing an online request of IEC Surrender on the DGFT website. Submit the documents and the application for the IEC Registration. Once the application is submitted, your IEC License shall be considered to be surrendered and the same will be revoked for all the future transactions.
Documents and Details required for IEC Surrender
- Registered Email Address and Password
- Firm Name
- Location and Address of the Business
- PAN Card of the IEC Holder
- IEC License Number
- The enclosure of original IEC certificate
- Covering letter addressed to the Additional Director General of Foreign Trade
Once the 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 inoperative.
Tags :corporate law