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

The Director General proposes to suspend the Importer-exporter Code Number of Mehta Traders for contravening the foreign trade policy. Which step must precede the suspension order under section 8?

Before suspending the code, the Director General or authorised officer must give a written notice stating the grounds and allow a reasonable opportunity for a written representation and, if the person wishes, a hearing. Section 8 requires this natural-justice step and does not require a court conviction.

  1. APrior approval of Parliament
  2. BA written notice stating the grounds, with a reasonable opportunity to make a written representation and, if desired, to be heardCorrect
  3. CAn order of a court convicting the trader
  4. DPayment of a security deposit by the trader

Explanation

Section 8(1) permits suspension or cancellation only after a written notice giving the grounds and a reasonable opportunity to represent in writing and, if the person desires, to be heard. No court conviction or parliamentary approval is mentioned. The Director General may also call for records or information.

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