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

Bharat Soft Solutions, a Pune IT firm, exports software services and claims no benefit under the foreign trade policy. It does not deal in any specified service or specified technology. Under section 7 of the Foreign Trade (Development and Regulation) Act, 1992, is an Importer-exporter Code Number necessary for these service exports?

No code is necessary here. The proviso to section 7 requires an Importer-exporter Code Number for services or technology only when the provider takes benefits under the foreign trade policy or deals with specified services or specified technologies. Bharat Soft does neither, so it can export without the code.

  1. AYes, because every service provider must hold the code
  2. BYes, but only if the export value exceeds a limit fixed by the firm
  3. CNo, the code is necessary only if the provider takes foreign trade policy benefits or deals with specified services or technologiesCorrect
  4. DNo, because services can never require the code under the Act

Explanation

The proviso to section 7 makes the code necessary for services or technology only when the provider takes benefits under the foreign trade policy or deals with specified services or specified technologies. Bharat Soft does neither, so the code is not required. The option saying services never need it is wrong because the proviso allows exceptions.

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