Podcast
Questions and Answers
What does the 'Importer-Exporter Code Number' (IEC) signify for an importer?
What does the 'Importer-Exporter Code Number' (IEC) signify for an importer?
- It is required for all citizen importers only.
- It is necessary for all importers to legally import or export goods. (correct)
- It is a number assigned to only commercial importers.
- It allows for the import or export of goods if exempted under the FTP. (correct)
Which category of importer is defined as anyone who uses imported goods for their own purposes in any form of business?
Which category of importer is defined as anyone who uses imported goods for their own purposes in any form of business?
- Stock and sale importer
- Actual user importer (correct)
- Merchant exporter
- Private importer
What distinguishes an 'Actual User (Industrial)' from an 'Actual User (Non-Industrial)'?
What distinguishes an 'Actual User (Industrial)' from an 'Actual User (Non-Industrial)'?
- The former uses goods solely for trading purposes.
- The latter is involved in manufacturing for other enterprises.
- The latter can include individuals in educational institutions. (correct)
- The former operates within a legal framework for service industries.
What distinguishes a Manufacturer Exporter from a Merchant Exporter?
What distinguishes a Manufacturer Exporter from a Merchant Exporter?
Which certificate is critical for exporters aiming to participate in export promotion?
Which certificate is critical for exporters aiming to participate in export promotion?
Who issues the RCMC for Export Houses and related entities?
Who issues the RCMC for Export Houses and related entities?
Which of the following is NOT a category of items for import classification?
Which of the following is NOT a category of items for import classification?
What is the primary purpose of licenses issued for Export Promotion?
What is the primary purpose of licenses issued for Export Promotion?
Which condition is typically mentioned in every import license?
Which condition is typically mentioned in every import license?
What must be included in an import license to ensure its validity?
What must be included in an import license to ensure its validity?
Study Notes
Importer-Exporter Code No. (IEC)
- IEC is a mandatory registration issued by DGFT for all importers and exporters in India.
- Customs Authorities require a valid IEC number to allow import or export activities, unless exempted as per FTP 2023.
Categories of Importers
- Broad classifications include:
- Actual user importer
- Stock and sale importer
- Private importer
- Licensing categories for actual user importers:
- Industrial (AU(I)): Uses imported goods in manufacturing.
- Non-Industrial (AU(NI)): Uses imported goods for commercial, educational, or service-oriented purposes.
Exporter Categories
- Exporters are subdivided into:
- Manufacturer Exporters: Produce and export goods.
- Merchant Exporters: Trade and export goods.
- Registration cum membership certificate (RCMC) is issued by designated authorities to facilitate export promotion.
Classification of Items
- Items are classified as follows for import purposes:
- Prohibited Items: Not permitted for import.
- Restricted Items: Require licenses per Public Notice.
- Free Items: Freely importable without restrictions.
- Items fall under 98 categories in ITC(HS) classification as specified by the Foreign Trade Policy 2023.
Types of Licences
- FTP 2023 includes two main types of licenses:
- Licenses for Export Promotion: Issued with an export obligation, offering concessionary duties to enhance export competitiveness. Common types include EPCG License and Advance License.
- Licenses for Domestic Use: Specifically granted for importing goods under Import Control, subject to conditions specified in the license.
License Features and Conditions
- Each license specifies:
- A list of permitted import items, detailed in the license document.
- Validity period, explicitly mentioned.
- Licensing period, which aligns with the provisions applicable at the license's issuance.
- Signature of the issuing authority, ensuring authenticity.
- A security seal to prevent tampering, similar to postal seals.
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Description
This quiz covers the regulations surrounding the Importer-Exporter Code (IEC) as specified in Chapter 2 of the Book of Instructions on Exports. It highlights the necessity of obtaining a valid IEC number for importing and exporting goods in India. Additionally, it classifies different categories of importers under these regulations.
