Skip to content

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

The Importer-exporter Code Number of Rana Exports was suspended for six months under section 8 for a customs law contravention. During the suspension, Rana wishes to import machinery. Which statement is correct under the Act?

Rana may import only under a special licence granted by the Director General in the prescribed manner and subject to prescribed conditions. Section 8(2) bars a person with a suspended or cancelled code from importing or exporting, whether goods, services or technology, except under such a special licence.

  1. ARana may import freely because suspension affects only exports
  2. BRana may import only under a special licence granted by the Director General in the prescribed manner and subject to prescribed conditionsCorrect
  3. CRana may import if it informs the customs officer in writing
  4. DRana may import under the code of any other firm

Explanation

Section 8(2) states that a person whose code is suspended or cancelled cannot import or export goods, services or technology except under a special licence granted by the Director General in the prescribed manner and on prescribed conditions. Suspension therefore covers both imports and exports. Using another firm's code would breach section 7, which requires the code to be granted to the person making the import.

Did you get it right without looking?

One question tells you little. A timed set on Foreign Trade Policy and Procedure shows your real accuracy, how long you take and where you lose marks.

Practise Foreign Trade Policy and ProcedureFree diagnostic mock

More Foreign Trade Policy and Procedure questions