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

Kaveri Handlooms Pvt Ltd, a Surat firm, wants to export sarees to Dubai. Under the Foreign Trade (Development and Regulation) Act, 1992, what must it hold before making the export of goods?

Kaveri Handlooms must hold an Importer-exporter Code Number granted by the Director General of Foreign Trade or an authorised officer. Section 7 bars any import or export without it. No separate licence is needed for each shipment unless the Act, rules or orders require one.

  1. AAn Importer-exporter Code Number granted by the Director General or an authorised officerCorrect
  2. BA special licence issued for every shipment
  3. CA certificate of registration under the Companies Act only
  4. DA permit from the Central Government for each export consignment

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 he authorises. A per-shipment licence is not the general requirement, since section 3(4) says no permit or licence is needed unless required under the Act, rules or orders.

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