For PayPal, we don’t need IEC Code but a purpose code. Still, for those who want to receive payments in India from and need an IEC code can get it online.
Update: more details are available from PayPal. PayPal will require a “purpose code” which is different from the Import Export Code or IEC Code. This code helps PayPal furnish information that may be required by the Reserve Bank of India to identify the nature of the transaction.
So here are my couple of articles for Purpose Code:
- What is Purpose Code For Receiving Foreign Currency Payment in India?
- The Right PayPal Purpose Code For Indian Freelancers in 2019?
For archive purpose, we have the content below.
Summary of recent update from PayPal is – Indians will be able to withdraw funds to local Indian 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 ten-digit numeric code issued to Indian companies by DGFT – Director General of Foreign Trade, Ministry of Commerce, Government of India. It is a one time process to get the IEC code and is valid for the rest of your life.
How to Get your IEC?
I asked some of my friends and relatives in the export business. I sense it is a simple process.
- IEC application form is available for download on dgft.gov.in. One can also get it from the offices of Director General of Foreign Trade.
- Filling the form is easy. If you are an individual freelancer, you should be doing this as a Proprietor company. So you will need a bank certificate, PAN card, Date of birth certificate, and a Demand Draft.
- You can submit the application in person to your regional DGFT office and check the current status of your application online at 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. As far as what I have inquired, it is around Rs. 250 only. Many sites claiming to be officials claim to get IEC in a week for 5000 bucks, but they are trying to make some quick money. All crap. You can get it in 1 week if you do yourself for Rs 250.
If you use a courier to send your application charges for courier may be added to 250 bucks.
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.
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