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.
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
- FAQ on IEC Number – Department of Commerce India
- Eligibility and other provisions for applying for IEC
- How to Get an Exporter Code in India for PayPal
- Directorate General of Foreign Trade