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CS Executive · Setting Up of Business, Industrial and Labour Laws · Various Initial Registrations and Licenses

Kavita runs a sole proprietorship in Jaipur and imports a sample machine worth a small value for her own personal use, not for trade. Which view reflects the exemption from IEC under the Foreign Trade Policy?

IEC is not required where goods are imported for personal use not connected with trade or manufacture. The Foreign Trade Policy specifically exempts such imports, but IEC remains necessary for commercial imports and exports, regardless of whether the importer is a proprietorship.

  1. AIEC is compulsory for every import without exception
  2. BIEC is not required for imports for personal use not connected with trade or manufactureCorrect
  3. CIEC is needed only for exports, never for imports
  4. DIEC is waived for any import by a proprietorship

Explanation

The policy exempts certain persons from IEC, including imports or exports for personal use that are not connected with trade or manufacture. Compulsory IEC for all imports is wrong because of this exemption. IEC applies to both imports and exports, and proprietorship status gives no waiver.

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