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

Meera Textiles of Surat wants to export cotton fabric under an export promotion scheme and also plans to provide a specified service to a foreign client. Under the Foreign Trade (Development and Regulation) Act, 1992, which statement about the Importer-exporter Code Number (IEC) is correct?

No person may import or export except under an Importer-exporter Code Number granted by the Director General or an officer he authorises. The requirement applies to both imports and exports of goods, and is not confined to persons claiming export promotion scheme benefits.

  1. ANo person may make any import or export except under an IEC granted by the Director General or an officer authorised by himCorrect
  2. BAn IEC is needed only by those who claim benefits under an export promotion scheme
  3. CAn IEC is granted by the Central Government only through a Gazette notification
  4. DAn IEC is required only for exports and never for imports

Explanation

Section 7 bars any import or export except under an IEC granted by the Director General or his authorised officer. It is not limited to scheme beneficiaries (that limit applies only to services or technology) and it covers both imports and exports.

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