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

Kaveri Software Services of Bengaluru exports software consulting services. It does not claim any benefit under the Foreign Trade Policy and does not deal in any specified service or specified technology. Under the Foreign Trade (Development and Regulation) Act, 1992, is an Importer-exporter Code Number necessary for this export of services?

No, it is not needed. The proviso to Section 7 requires an IEC for export of services or technology only where the provider is taking benefits under the foreign trade policy or is dealing with specified services or technologies. Kaveri meets neither condition, so it can export without one.

  1. AYes, an IEC is always needed for any export of services
  2. BNo, for services or technology it is necessary only when the provider takes policy benefits or deals with specified services or technologiesCorrect
  3. CYes, but only if the export value exceeds ten thousand rupees
  4. DNo, services never require an IEC under any circumstance

Explanation

The proviso to Section 7 makes the IEC necessary for services or technology only when the provider takes benefits under the foreign trade policy or deals with specified services or technologies. Kaveri does neither, so no IEC is needed. 'Always needed' ignores the proviso, and 'never' is wrong because the proviso has two triggers.

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