{"id":8174,"date":"2021-05-12T12:34:13","date_gmt":"2021-05-12T12:34:13","guid":{"rendered":"http:\/\/webonlinestudio.com\/blog\/?p=8174"},"modified":"2021-05-17T18:35:58","modified_gmt":"2021-05-17T18:35:58","slug":"how-can-one-surrender-an-iec-import-export-code","status":"publish","type":"post","link":"https:\/\/webonlinestudio.com\/blog\/how-can-one-surrender-an-iec-import-export-code\/","title":{"rendered":"How can one surrender an IEC (Import &amp; Export Code)"},"content":{"rendered":"\n<p>With the rapid digitalization globally, the scope for import and export of goods and services has been rising tremendously. Whether you have a company or a partnership firm, there will always be a possibility of making gains from selling your excellent products outside of the country.&nbsp;<\/p>\n\n\n\n<p>The pandemic has enforced the restructuring of many businesses connected to imports and exports. In this context, a business might choose to surrender its existing import and export license, known as IEC (import and export code). It is exceptionally crucial to carry out <a href=\"https:\/\/www.legalwiz.in\/import-export-code-iec-registration\">IEC code registration in India<\/a> before starting an import-export business to ensure following the necessary business compliance. In this blog, we will talk about a few easy steps by which you can surrender an import and export license.<\/p>\n\n\n\n<p><strong>Why is an IEC requisite in the first place?<\/strong><\/p>\n\n\n\n<p>&#8211; The IEC is a crucial document for engaging in import and export business in India.<\/p>\n\n\n\n<p>&#8211; Irrespective of the place of business, citizenship, or structure of the organization (company, partnership or proprietorship), the IEC number is compulsory if the international movement of goods is involved.<\/p>\n\n\n\n<p>&#8211; It is also requisite for customs clearances, bank remittances and port authorities.<\/p>\n\n\n\n<p><strong>When can one cancel their IEC?<\/strong><\/p>\n\n\n\n<p>As per the rules stated by the DGFT, one IEC will be allocated against a single PAN number. Any owner can have only one IEC number at a time, and in case there is more than one IECs issue to an owner, then the same might be surrendered to the original office for cancellation. If this is not done, the department will enforce penalties and cancel the code itself.<\/p>\n\n\n\n<p><strong>Why would one want to surrender an IEC?<\/strong><\/p>\n\n\n\n<p>There will be plenty of reasons for surrendering an existing import and export code. Some of them are given below;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.legalwiz.in\/blog\/what-is-the-process-of-winding-up-a-private-limited-company\">Winding up of a company<\/a> in case of a business closure.<\/li><li>The sale of a business to another owner (as the IEC is associated with the PAN of the owner, a sale of the business will require the linking of the IEC number with the new owner\u2019s PAN).<\/li><li>The partial closure of the import and export division of the business, rendering the IEC useless.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Is it advisable for one to surrender an existing IEC number that is not linked to one\u2019s PAN and apply for a new one?<\/h2>\n\n\n\n<p>PAN and IEC \u2013 after the amendment in the tax laws via the GST (goods and services act), the permanent account number or PAN can function as the firm\u2019s IEC. The IEC is a 10-digit code allocated on the individual PAN or the company\u2019s PAN.<\/p>\n\n\n\n<p>&nbsp;The importer\/exporter cannot apply again for IEC using the same PAN even if he\/she has already cancelled or surrendered the numeric IEC. Hence, it is better to apply for the alterations in the same IEC after the linking in the system.<\/p>\n\n\n\n<p><strong>How can one request for the IEC surrender?<\/strong><\/p>\n\n\n\n<p>A request has to be made online to surrender the IEC via visiting the DGFT website. Here are the few steps that can help you in doing so;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Step one \u2013 log in to the DGFT\u2019s website with your credential at dgft.gov.in and select the tab \u2018services\u2019 from the homepage.<\/li><li>Step two \u2013 from the services drop-down menu, select \u2018IEC profile management.\u2019 If you have not logged in already, then you can also select to directly reach to this page with the help of a link that you will find on the internet with dgft\u2019s profile management.<\/li><li>Step three \u2013 on this page, you can see various options like processes and prerequisites involved with the IEC. Scroll down the page, and you will see the option \u2018surrender IEC.\u2019<\/li><li>Step four \u2013 on this page, the website would ask you to log in with your registered email address and password. If you do not have one, you can also create a new one by submitting details like your mobile number, district, pin code, state and city then and there.<\/li><li>Step five \u2013 once you have logged in, check in the relevant business details like firm name, PAN number, and so forth and click on surrender.<\/li><li>Step six \u2013 the IEC, once suspended successfully, would be revoked for all future transactions.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs.<\/h2>\n\n\n\n<p><strong>What is the difference betwixt the suspension of IEC and surrendering IEC?<\/strong><\/p>\n\n\n\n<p>In suspension, it will be enforced by DGFT, while surrender will be voluntary.&nbsp;<\/p>\n\n\n\n<p>DGFT officials can start the suspension of IEC if they think it restricts the trade relation of the country with another country. It will be done after providing the opportunity to the IEC holder to represent his\/her case.<\/p>\n\n\n\n<p>When any IEC is cancelled or suspended, individuals cannot import or export any good except under a special license.<\/p>\n\n\n\n<p><strong>How can one apply for revocation of suspension of one\u2019s IEC?<\/strong><\/p>\n\n\n\n<p>The DGFT has the power to suspend the existing IEC certificate allocated to the importer or exporter. Due to various reasons;<\/p>\n\n\n\n<p>&#8211; Infringement of foreign exchange regulations.<\/p>\n\n\n\n<p>&#8211; Fraud in excise, customs, or compliance with any law.<\/p>\n\n\n\n<p>&#8211; Carrying out disrepute to trade relations with India.<\/p>\n\n\n\n<p>The DGFT will send the notice first before doing it. One can apply to revoke suspension after linking IEC on the portal. The request has to be signed and filed online. It has to be approved by the regional officer. For revoking the IEC cancellation, the concerned office would start the request, and the same would be sent to get the approval from DGFT\u2019s HQ.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the rapid digitalization globally, the scope for import and export of goods and services&#8230;<\/p>\n","protected":false},"author":1,"featured_media":8175,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57],"tags":[],"class_list":["post-8174","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How can one surrender an IEC (Import &amp; Export Code) - Web Online Studio<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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