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CMA Final · Indirect Tax Laws and Practice · Export Promotion Schemes under Foreign Trade Policy

Which statement about the Importer-exporter Code Number (IEC) in the FTDR Act, 1992 is correct?

No one may import or export without an IEC granted by the Director General or an authorised officer. For services or technology, however, the IEC is necessary only when the provider takes foreign trade policy benefits or deals with specified services or technologies.

  1. AIEC is mandatory for every import or export of services or technology
  2. BNo person may import or export except under an IEC, but for services or technology it is necessary only when the provider takes benefits under the foreign trade policy or deals with specified services or technologiesCorrect
  3. CIEC is needed only for exports and never for imports
  4. DIEC is granted only by the Central Government through the Finance Ministry

Explanation

Section 7 bars any import or export without an IEC granted by the Director General or an authorised officer. The proviso relaxes this for services or technology, requiring an IEC only when taking FTP benefits or dealing with specified services or technologies. The first option ignores the proviso.

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