How To Get An Import Export Code In India?

Very recently i read that PayPal had stopped personal payments to and from India and now exporters can withdraw money to their bank account using the IE code. I am a holder of IEC (Import Export Code) and operating from Bangalore, the state of Karnataka. I want to share my experience with you guys and it is not easy as you think. Prior to start any commercial activities try to get your PAN (Permanent Account Number). Registering a business is the first step: Import Export code is issued only to the business and not to individuals. You should rent or own a space (shop) which is declared by the government as Commercial for which the commercial tax is paid. You have to produce the commercial tax receipt for the same. Start working on the place with a Name board Open a Savings A/c in your name Then apply for a VAT Registration Certificate either personally or through a Chartered Accountant with a required amount of fees. This certificate will be issued from the office of the Commissioner of Commercial Taxes in your state after required verification. Normally he visits the proposed shop personally and ask you various questions regarding and if he is fully satisfied that the information is true and genuine, he will issue the certificate in FORM VAT 7 Opening a Current A/C is the second step:  Now you eligible to open a bank a/c (Current A/c) in the name of the business. Normally, the minimum balance to open a current a/c with SBI is Rs. 10,000/- and for the same, give the copy of VAT certificate to the bank. Applying for IEC is the third step:  After opening the Current A/C, apply for a Certificate of Importer-Exporter Code (IEC) to the Director General of Foreign Trade in your State with a required amount of fees along with a letter from the bank manager stating that your business is having a current a/c in their bank since so and so date with your photograph. After the required verification from the office of the Director General of Foreign Trade, the certificate will be issued. 


Getting AD Code is the fourth step:  After getting your IEC, approach the bank where the Foreign Exchange transactions are done, request for an AD Code in writing with the supporting documents of IEC and Current A/C details. No fee is required for the same and the code will be issued in few minutes. AD Code is the Authorised Dealer code number allocated to the bank to which the foreign exchange remittance would be forwarded by the Consignee. The AD Code number is a 14 digit number (e.g. 1234567-1234567). An incorrect code declaration would result in delays in customs clearance.

.Now you can receive your foreign payments through your account.

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