How to Get an Export Code for PayPal in India

Summary of recent update from PayPal is – Indians will be able to withdraw funds to Indian local banks provided they have ‘Export Code’ which they can provide at the time of withdrawal.

I had no idea what Export code is? So started searching things on what it is, how to get it, and the process behind getting it. So here I am with the clarification as much as I have currently.

What is Importer Exporter Code or IEC?

IEC is a 10 digit numeric code issued to Indian companies by DGFT – Director General of Foreign Trade, Ministry of Commerce, Government of India and is valid for rest of your life. This means it is just a one time process.

How to Get your IEC?

As I asked some of my friends and relatives I can sense that this is a very simple process.

  1. Download IEC application form is available for download on dgft.gov.in or can even get it from offices of Director General of Foreign Trade.
  2. Filling the form is easy. If you are an individual freelancer you should be doing this as Proprietor company and so you will just need a bank certificate, PAN card, Date of birth certificate and a Demand Draft.
  3. You can submit the application in person to your regional DGFT office and check the current status of your application on dgft.gov.in

What is an Approximate Fee for getting IEC?

I still have not applied for IEC myself and is waiting for the final update from PayPal but as far as what I have inquired it is around rupees 250 only. Many sites and other officials (read dalals) who claim to get IEC in a week for 5000 bucks is all crap and actually you can get it in 1 week if you do yourself for Rs 250.

If you use courier to send your application charges for courier may be added to 250 bucks.

More …

If you have more questions shoot them in comments and I will try to get answers from people I know who are in the export business.

Update: more details are available here – PayPal will henceforth require a “˜purpose code’ which is different from the Import Export Code mentioned above. This code helps PayPal furnish information that may be required by the Reserve Bank of India to identify the nature of transaction.

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  • http://fasteasyhost.com/ Kunal Jain

    Please check the below link on the Paypal's official blog. They say “Export Code” is different then the “Import Export Code (IEC)”.

    https://www.thepaypalblog.com/2010/03/new-bank-

  • http://imtips.co Shabbir Bhimani

    PayPal Withdrawals are back to Normal and I gave a withdrawal requests and it went through. Hope the amount gets deposited into my bank account in few working days.

    Anyone else tried it yet?

    • http://imtips.co Shabbir Bhimani

      The amount deposited fine into my account today. Its completely back to normal now.

  • fjjeffries

    I am a freelancer and work with small assignments from home, my transactions do not exceed more than 300 dollars a week. Would I require IEC ?

    I also read https://www.thepaypalblog.com/2010/03/new-bank-… where only a purpose code (P0802 -for my kind of services) would be sufficient.

    Could you clarify on these please.

    Thankyou,

    • http://imtips.co Shabbir Bhimani

      No you will not need IEC and see the latest Update I have posted about it.

  • http://www.mobilegyaan.com/ Deepak Jain

    Those import export code thing was a complete misunderstanding by all tech blogs earlier.

    Its ‘purpose code’ and not import-export code that you need to withdraw funds to Indian bank account.

    Details are here –
    http://devilsworkshop.org/indian-paypal-users-need-purpose-code-and-not-import-export-code-to-withdraw-funds-to-their-bank-accounts/

    • http://imtips.co Shabbir Bhimani

      Deepak, Thanks for clarifying that and it looks much better now that we do not need to be doing anything related to IEC.

  • Ravi

    Is there a association of Private Companies in india (similar to NASSCOM) which can present its case to the Govt. of India or Commerce Ministry – mainly with respect to simplifying procedures, and removing red tape.

    We need an association which can represent individual entrepreneurs/companies. Example: Government should have only told PAYPAL to comply with its laws within 3 months and allowed it to continue – instead of shutting its service for India. That would show we are a mature country. What happened was immature.

    • http://imtips.co Shabbir Bhimani

      As far as I know PayPal was told in November 2009 but did not take decisive action and when it was told to stop they reacted.

      We are seeing only the PayPal version of it in the PayPal blog that they reacted immediately but that is completely not true.

      I have checked with the official release notes from foreign trade department of India and they gave this to all stake holders in November 2009

  • manish

    How much time does it take approximately to get the IEC code?

    • http://imtips.co Shabbir Bhimani

      250 Rs and 1 weeks time ideally

  • http://www.a2zwebindex.com/ zaaylo

    Guys dont spend too much money to any consultant of Export. The entire IEC code is available with Rs. 250 which is fees for life time and 30+30 two postal tickets for address cover to your bank and your own address.

    • http://imtips.co Shabbir Bhimani

      Exactly and if anybody charges more than that just tell him that you know the fees and all and see how he slashes the fee

  • smartindian

    Appeal and Request to All

    Quit PayPal. Join Moneybookers.

    Moneybookers is cheaper than PayPal.
    Money transfers from Moneybookers is quick and swift.
    Yes, they use the SWIFT method, that is, they wire the money to your local bank, instead of using the NEFT method of PayPal.
    Moneybookers and RBI have no problems with eachother.
    Customer Care of Moneybookers is good. They are prompt and satisfactorily reply to your queries.
    Moneybookers is organised, authentic, systematic and very professional.

    You might have one question in your mind that the world, all the webstores, all my clients use PayPal, so how can I use moneybookers.

    The answer is that you move to moneybookers, tell your friends to do the same. If all flock to MB, then rest will follow… your webstores, clients and the world.

    Quit PayPal. Join Moneybookers.

    Use this link and give me some credit
    https://www.moneybookers.com/app/?rid=15325439

    God Bless You!

    … and save you from PayPal

    • http://imtips.co Shabbir Bhimani

      We have already done that but the people from outside US will not prefer to pay using MB all the time.

      See http://www.go4expert.com/forums/showthread.php?…

      • smartindian

        Latest message from MB:
        “We would like to kindly inform you that payments between US customers, and US customers and international customers using the Send Money service are not supported according to the Moneybookers policy. Therefore, please note that you will be not able either to receive or to send payments from the 'Send money' section to customers from the United States.”
        Does it mean that US clients can't pay us Indians using MB?

    • manish

      Can we use moneybookers to withdraw money from paypal?

      • http://imtips.co Shabbir Bhimani

        Not directly but yes you can do that indirectly. Something like you withdraw to a credit card in Paypal and upload from the same card in moneybookers and then withdraw from monebookers to your bank.

        You will loose too much on the transaction fees and its better off to withdraw to a Visa debit card which means it will be credited to your bank account.

  • codeunlock

    You are Helping Entrepreneurs and RBI has almost ruined all startups by blocking PayPal

    • http://imtips.co Shabbir Bhimani

      I don't take it with a pinch of salt but with a pinch of sugar because for entrepreneurs each calamity is an opportunity.

  • http://elagaan.com/ Vinita Kumari

    elagaan.com is providing service about this

    • http://imtips.co Shabbir Bhimani

      They are charging a limited time offer of 4749 Rs where as it only costs Rs 250.

      • http://elagaan.com/ Vinita Kumari

        Yes, but that is just the govt. fees. I just sgned up with them, and they are guiding us thru the complete process, including answering my queires to form filling to tracking.
        I liked the fact that they are providing instructions on self doing but option to do it thru a person if I need to. I went me them cause I did not know how to make sure my paper work is good :-)

        • http://imtips.co Shabbir Bhimani

          That is because you are owner of that website you are using it. I do not see any other reason other than that.

  • Jaswinder

    Will a Savings Bank account do? or we will need a current bank account? and is there a time period which is required for the account to be opened for? I mean does it have to be opened for an year or are we good to go by just opening a new one?

    • http://imtips.co Shabbir Bhimani

      Savings bank account will do because even an individual apply for the same. I think we should have an account and I am not sure if new account will help because bank certificate (as I know) has something that this individual has an account with us for so much time.

  • ajayoct

    IS there any provision for online submission?
    Could you forward a link of the regional offices

    • http://imtips.co Shabbir Bhimani

      No I dont think there is anything where we can complete this online but I found this when searching for regional offices – http://www.dgft.org/DGFT_Offices.html

  • http://www.easydestination.net/ Mayank

    What is bank certificate. What documents will work as bank certificate.

    • http://imtips.co Shabbir Bhimani

      This is normal and you need that for even your address proof or identity proof and HDFC is smart at earning some bucks for this certificate as well.

  • http://www.classifiedsforfree.com/blog/ Free Classifieds Blog

    Hmm, how fast DGFT will be able to process the flood of application? Now every free lancer have to go through this arduous process. I think India need to open up and simplify its processes more.

    • http://imtips.co Shabbir Bhimani

      True but that will take time for Indian Government to realize.