Pathik Shah

How to get the IEC Importer Exporter Code for Paypal in India

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Update – 02/03/2010

We don’t need a IEC code for Paypal bank withdrawals. What we need is a Purpose Code. You can find more details on the Paypal Blog. Most of us should have to use the codes – P0801, P0802, P0803 or P0805, P0806.

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This guide will show you How to apply for the IEC Export Code for enabling local bank withdrawals via Paypal to India.

Local Bank withdrawals in India by Paypal should start by March 3, 2010. You will need to enter the IEC / Importer Exporter Code / Export Code when withdrawing money to your local Indian Bank account.

What is the IEC?

IEC is the Importer Exporter code which is granted by the Directorate General of Foreign Trade (DGFT), to any bonafide person or company for carrying out import / export. Here is a Sample IEC.

The IEC forms the primary document for recognition by Government of India as an Exporter / Importer. On the basis of IEC, companies can obtain various benefits on their exports/imports from DGFT, Customs, Export Promotion Council etc.

Why do you need the IEC?

If you are a  Paypal user and need to withdraw money from your Paypal account to your local Bank account, you will need the IEC according to a recent RBI directive.

How to apply for the IEC “Import Export Code”?

You can apply for the IEC at the Zonal Directorate General of Foreign Trade (DGFT) office.

The application form can be downloaded here – IEC Application Form

Just fill the IEC application form (Parts A,B,D in case of a new IEC) and submit it along with the application fees – Rs. 250 DD.

If you are an individual, you can apply for the IEC as a Services Provider Proprietorship Firm.

Both savings and current accounts are accepted. You do not need a current account.

Documents Needed:

1. Covering letter
The cover letter should be on the letterhead of your firm.

2. Completed Application Form
Complete sections A,B,D of the IEC form

3. Bank Certificate
The bank certificate has to be obtained from the bank which manages your savings/current account. The format of the bank certificate is in the IEC form.

4. PAN Card – 2 copies

5. 2 passport photos

6. Self Addressed Envelope

Useful Links:

DGFT Website

DGFT FAQs

Import Export Code FAQ

IEC Application Form

Update 27/02/2010:

Paypal resumes Local Bank Withdrawals to India

Paypal has been working on the issue with RBI and will resume bank withdrawals in India by March 3rd.

Details – Resuming local bank withdrawals to India

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Paypal had officially stopped personal payments to Indian accounts and cash withdrawals to Indian bank accounts 3-4 weeks back because of some issues regarding remittances to India. They are still work on the issue with the RBI regulators; but the issue is yet to be resolved.

Here are some details on the Paypal India situation –

Personal Payments and local bank transfers in India

Update on PayPal situation in India

The alternative to withdraw money from your Paypal account to your bank account in India was to use Xoom.

Starting today, even Xoom has stopped accepting Paypal as a funding source in Indian transactions.

Details on that -

Xoom – Paypal Funded Transactions to India Blocked

How to withdraw money via Paypal to your Indian Bank Account?

The only way to withdraw money from Paypal now is to request a check. The fee is $5.00 and it takes about 5-7 working days.

I have been trying to make sense of the Union Budget 2010-2011 and here are the points which I think should affect the technology sector. There hasn’t been much in this budget for us technophiles though.

Key Features of Indian Union Budget 2010 – 2011

Computers and Mobiles

The Special Additional Duty of Customs (SAD) of 4% on imported mobile handsets has been fully exempted. This should lead to a slight fall in mobile prices if the manufacturers decide to pass on the benefit to the consumers.

The budget has also proposed to remove the 24% import duty on components imported for manufacturing batteries, chargers and other mobile accessories.

On the other hand, the central excise on all non-petroleum products has been increased from 8 to 10%, which may end up eroding the tax savings on technology products due to the above mentioned points.

IT

There have been no specific announcements made which should affect the IT sector directly but the UIDAI (Unique ID Authority of India) project has been approved and Rs. 1900 crores have been allocated to it. The project will most likely be handled by Indian IT companies so this should be good.

Also, Rs. 31000 crores have been earmarked for school education reforms in 2010-2011; which will probably be a boost for the IT sector in the long term.

One of the best things about this budget seems to be that both the GST and the Direct Tax code will finally be applicable by April 2011.

I’m still browsing through the whole budget document. Will update this post if I find anything relevant.

How to Apply for Patents in India ?

Patent: A Patent is a statutory right for an invention granted for a limited period of time to the patentee by the Government, in exchange of full disclosure of his invention for excluding others, from making, using, selling, importing the patented product or process for producing that product for those purposes without his consent.

Criteria:

i)  It should be novel.

ii) It should have an inventive step or it must be non-obvious

iii) It should be capable of Industrial application.

Here’s a PDF with basic details about patents – http://ipindia.nic.in/ipr/patent/pat_proc.htm

The best way to file a patent is through a patent agent or a lawyer specializing in IP and patents.

List of Authorized Patent Agents in India – http://ipindia.nic.in/ipr/patent/patent_agent/List_PatentAgent_31December2009.pdf

How to File a Patent Application Online ?

File a Patent Application Online -> https://www.ipindiaonline.gov.in/on_line

Guide to File a Patent Application Online – https://www.ipindiaonline.gov.in/on_line/ipo_user_manual.pdf

Before filing a patent, you may want to check out if your invention already exists (prior art) or has already been patented.

Search for existing patents here – http://ipindia.nic.in/PatentSearch/ipirs_index.htm

Indian Patents FAQ – http://ipindia.nic.in/ipr/patent/FAQ_Patent.htm

Airtel has launched the HTC Magic / Google Ion / MyTouch in India. This is officially the first phone launched in India based on Google’s Android platform. The HTC Magic is powered by Android v1.5 and has much better specifications than the HTC Dream / G1. It sports a better camera, a virtual keyboard and is much slimmer and lighter.

HTC Magic Specifications:

• Dimensions: 117.7 x 55 x 13.7 mm
• Weight: 118.5 gms
• Display: 3.2 inch TFT Display, 320 x 480 pixels, 65K colors
• CPU: Qualcomm MSM 7201A 528 MHz
• RAM: 192 MB RAM
• ROM: 512 MB ROM
• Connectivity: GPRS, HSCSD, EDGE, 3G, Wi-Fi 802.11 b/g, Bluetooth v2.0 with A2DP
• Camera: 3.15 MP Camera with AF
• OS: Android 1.5
• Battery: Li-Ion 1340 mAh

Airtel is offering services like Portfolio Manager, Hello Tune Manager, Weather Channel, Mobshare, In Mobile Search, City Search etc with the HTC Magic. It is priced at Rs. 29,900 and will be available at all Airtel Centers and HTC resellers. Airtel will provide free data transfers of 100 MB per month for the first 6 months. It seems to be an unlocked version, will soon confirm this.

Great news, except for the price. I was really hoping to buy this when it came to India but 30K seems too expensive.