Certificate of Importer-Exporter Code (IEC)
Certificate of Importer-Exporter Code (IEC)
Any business involved in the import and export activities requires the Certificate of Importer-Exporter Code. Without this, it can neither import nor export goods from India. Also, it misses out on certain benefits provided by the Director-General of Foreign Trade (DGFT), who issues this certificate. A business needs to qualify certain aspects to get this certificate. Riyo Gems is registered under Import Export Code, which makes it evident that it is authorized to do business across the local boundaries, thus making it more credible.
It seems like you've provided information about the importance of the Importer-Exporter Code (IEC) in conducting import and export activities in India. The IEC is a 10-digit code issued by the Director-General of Foreign Trade (DGFT) to businesses or individuals involved in cross-border trade. This code is a requirement for engaging in international trade transactions, as it helps in tracking and monitoring the movement of goods across borders.
The IEC serves several purposes:
Legal Requirement: As you mentioned, the IEC is mandatory for any business or individual involved in import and export activities. Without it, they cannot engage in international trade transactions.
Identification: The IEC serves as a unique identification for businesses engaged in cross-border trade. It is used by customs authorities to identify the importer or exporter and track their transactions.
Customs Clearance: The IEC is required during the customs clearance process. Customs officials use this code to verify the legitimacy of the business and ensure compliance with trade regulations.
Banking Transactions: The IEC is necessary for businesses to receive payments for their exports and make payments for their imports. Banks require the IEC to process these transactions.
Government Benefits: Businesses with a valid IEC can avail certain benefits provided by the government, such as export incentives, duty drawbacks, and other trade-related schemes.
Credibility: Possessing an IEC enhances the credibility of a business engaged in international trade. It signifies that the business is registered and authorized to conduct cross-border transactions.