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

Meera Textiles Pvt Ltd in Surat plans to export cotton fabric to Dubai for the first time. Under the Foreign Trade Policy, what must it obtain before making the export shipment?

The company must obtain an Import Export Code from the Directorate General of Foreign Trade before exporting. The IEC is the basic identification needed for import or export under the Foreign Trade Policy; local establishment registration or incorporation alone does not authorise cross-border trade.

  1. AImport Export Code from the DGFTCorrect
  2. BRegistration under the Shops and Establishments law only
  3. CLicence from the Reserve Bank of India for every shipment
  4. DCertificate of incorporation from the Registrar of Companies a second time

Explanation

A person engaged in import or export of goods or services must hold an Import Export Code (IEC) issued by the Directorate General of Foreign Trade, unless specifically exempted. A Shops and Establishments registration does not authorise trade across borders. The RBI does not license each shipment, and the company is already incorporated.

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