How to Surrender IEC License? - Bizfoc

Overview 

IEC registration is the gateway to allow trading of business’ goods and services. This registration deals to identify the business importing goods and services abroad. IEC registration is necessary for the entities that deal with international trade. 

However, in some cases, when the business intends to give up their right to use the IEC license for trading their goods, they need to submit the request in the DGFT portal. Due to various factors such as business closure, change in business operations or a shift to a different trade model, they shall need to submit the request for Surrender IEC License. In this article, we will provide you complete insights on how to surrender IEC license on DGFT portal, documents required and conditions of surrendering import and export code. 

What is an IEC License?

Import Export Code License or IEC License is the 10 digit alphanumeric code which identifies and allows businesses to import and export from India. Directorate General of Foreign Trade (DGFT) issues IEC licenses and are mandatory for import export business. Those businesses who’re willing to outreach their products and services are mandatory to get the IEC license. 

What is the Surrender of IEC License?

When an applicant gets an IEC license to allow themselves to compete in the global market, following the business regulations, compliances and the required registrations to start the business. Eventually in some cases, the firm changes its business operations, shifts in operations and even changes to a different trade model. In such conditions, an IEC holder voluntarily revokes his or her rights to use IEC registration for import export. This process of giving up rights is called the surrender of an IEC license. 

Conditions of Surrendering Import Export License 

Following are the conditions for surrendering import export license, which are as follows:

1. When one willing to close their business 
2. When one company wants to bring its operation to an end
3. When an IEC holder endorse their Import and Export Business 
4. When a business closes the division of import and export in the business. 

Documents Required for Surrendering IEC License 

Here is the list of documents required for surrendering IEC license, which are as follows:

1. Existing IEC registration document
2. The PAN Card of an individual
3. IEC License Number 
4. Covering letter of the company
5. The name of the company
6. The registered email address 

How to Surrender IEC License? 

Step 1: Login to DGFT Portal

To get your IEC license surrender, you need to login to the DGFT portal. This platform is provided to allow businesses to apply for licenses for trading goods from India. This portal is more than just to register for the IEC license but it also allows users to monitor the status of applications.

Step 2: Click IEC Profile Management 

On visiting this portal, you will see the dropdown, appear on the services ‘IEC Profile Management’ shall be selected. In this IEC profile management, you will explore various tabs from application to IEC related FAQs. This profile management contains 8 tabs that will help you keep updated from the status of application to tariffs. 

Step 3: Select the IEC Surrender

In the profile management page, you need to scroll down the IEC and find out the ‘IEC surrender tab’. On scrolling down the page, you need to select this tab. 

Step 4: Fill the required fields 

Further on this page, or by clicking on IEC surrender, you need to fill the login credentials such as passwords and username. After that you need to attach the reason why you need to surrender the IEC license. By attaching the reason, you need to give a declaration while submitting your surrender request. 

Step 5: Review your Response

After completion of the process of logging in, you will need to submit required details and check whether your response is correct before making it final. The screen will pop up with a Digital Signature Certificate. On checking the user will aptly finalize the response and click on ‘Surrender’ for the surrender of IEC.

Step 6: Successful Submission

After submission of the request, the IEC license shall successfully suspend and thus revoke it for all future transactions. 

Conclusion 

In most cases, an account holder won't be able to exercise their right to use the IEC registration. To surrender your IEC license, you can apply for surrendering the license. But in some cases, you may not be able to surrender by themselves but instead need professional guidance for making your request successfully. In order to stay compliant in trading the products and services, you need to follow the above steps for surrender of IEC registration. 

Frequently Asked Questions 

1) How to activate deactivated IEC?

To activate the deactivated IEC registration, you need to visit the DGFT website and renew your IEC certificate as early as possible. 

2) Is IEC mandatory?

Yes, IEC is mandatory for the business entities that are willing to trade their goods and services in the global market. 

3) Is there any fee associated with surrendering their IEC License?

No, there is no fee associated with surrendering their IEC license and are free of cost. 

4) Can I gain surrendered IEC license?

No, you can’t claim again that surrendered IEC license which was once surrendered directly to DGFT. 

5) Will surrendering my IEC license affect compliance on taxation?

No, surrendering an IEC license will not have any effect on the compliance of taxation. 

6) How do I confirm if my status of surrendering IEC license is successful? 

For checking your application status of surrendering IEC license, you need to visit the DGFT portal for checking the status of the application.