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CS Executive · Economic, Commercial and Intellectual Property Laws · Foreign Trade Policy and Procedure

Ananya Exports Pvt Ltd, a Surat firm, plans to ship cut gemstones abroad and claim benefits under an export promotion scheme of the Foreign Trade Policy. Under the Foreign Trade (Development and Regulation) Act, 1992, what is required before it makes any export?

The firm must hold an Importer-exporter Code Number granted by the Director General of Foreign Trade or an officer authorised by the Director General. Under Section 7 of the Act, no person may import or export without such a code, whether or not a promotion scheme benefit is claimed.

  1. AAn Importer-exporter Code Number granted by the Director General or an authorised officerCorrect
  2. BA licence from the Collector of the District
  3. CA certificate from the Competition Commission of India
  4. DPrior approval from the Reserve Bank for every shipment

Explanation

Section 7 says no person shall make any import or export except under an Importer-exporter Code Number granted by the Director General or the officer authorised by the Director General. The other options are not conditions laid down in the Act for making an export.

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