Import Export Code (IEC) For PayPal India Payment Withdrawals

Earlier today, we told you about how PayPal had restarted bank withdrawals for Indian users, however, that announcement came with a catch. Indian users had to fill a field called "Export Code" to initiate the withdrawal.

paypal_logo

Now, PayPal has not really clarified much about the "Export Code", but it is basically a Importer Exporter Code (IEC) which is issued by the Government of India, for people who Import or Export goods or services outside India.

Now, PayPal by themselves will not provide users with an "Export Code" and users who require to withdraw payments to their banks will have to apply for it themselves and the process in itself might take several weeks.

So now designers, freelances and website payments will come under the prerogative of Import/Export laws, and taxes for the same will be applicable. This is definitely going to complicate the process of receiving and sending payments for PayPal India users and is 90% PayPal’s fault as they did not follow the rules laid down by Reserve Bank of India (RBI) in the first place.

Users who want to get the IEC will have to fill out a form and submit it to the respective department along with required documents to get it approved.

So get ready to face a lot of delays in getting both the IEC and your money out in the future. Getting the IEC is not a straightforward task and you will have to go through several processes and forms before you can get one.

Useful Links for Applying and Learning More About IEC In India

10 thoughts on “Import Export Code (IEC) For PayPal India Payment Withdrawals”

  1. Getting IEC code is complicated process and takes 15-20 days or even more. I have one and it took me 1 month to get it. Catch a agent (they will earn handsome now) and get documents from your bank where the a/c is, sign-up the forms provided by your agent, attach PAN card and off you go. Getting document from bank can also be tire-some. But finally you will be happy to get IEC!!

  2. Getting an IEC is not as hard as you are saying, I got my IEC in 4 working days, thats what it usually takes if you have papers in order.

    Also I dont fear IEC as all of us who gets payment through Paypal for services do pay taxes (at least I do), and now probably you can get some benefits and exemptions under export policy.

    1. Hi Abhishek,

      I do agree with you. But looking at the time frame of yours, it was good. Now when you get flood of applications for IEC code, it will take days, like I took one. I am also a regular tax payer and also pay taxes on payments I get from PayPal to my bank a/c

      IEC code just implies that you are doing I-E biz and nothing much. Also, till now I do not get any benefits nor exemptions from IT dept, as that money you get adds to your net income.

      Lets see how PayPal resumes their services.

  3. this is simple. you have to pay 2000 rupee bribe (that is why this red tape is for) . i got my IEC 6 years ago.

    there is 1000 rupee fee you pay to goverment.
    if you don't pay bribe. your application will be rejected 3 times(like mine ) for reasons like this.
    address and name in same line.

    need envelop of bank (which bank will deny ofcourse)

    get seal on photo . that bank will deny again because of bank rules.

    once you pay the bribe, you get the iec .

  4. Hi All,

    I've been an exporter for over 15 years now, and just started my own business. I'm going to be using Paypal to start up my online retail business to USA.

    Getting an IEC Code took me 3 days. If you have a bank account in your company name, it takes less than 48 hours to get your IEC.

    If you need help let me know. It costs around Rs 4000.00 all inclusive to get an IEC.

    Thanks,

    Pranay

    1. Hi Pranay,

      I want to start a new small business in chennai. I want to apply for IE code. For that they are asking for current account in the name of the firm. I don't have much contacts with the bank ppl. Can you pls help me for opening the current account in the name of my firm.

  5. Hello,
    I also want to know that I am planning to opena business account with them, and I dont have a bank account. I mean I have a personal account here in India. Can i still open account with paypal and do money transaction even withdraw money.

  6. not always the IEC is issued within couple of days, lot of times it gets delayed and due to small reasons it gets rejected. better to use professional help

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