FTP - Use of IEC Number by importers/exporters DGFT Cautions
IT is reported that some importers/exporters are effecting imports/exports by using IECs issued to others, which is a complete violation of provisions of Foreign Trade Policy.
As per the Section 7 of The Foreign Trade (Development and Regulation) Act, 1992, as amended in 2010 read along with Rule 12 of Foreign Trade (Regulation) Rules, 1993 every person should make import or export only with Importer-exporter Code Number allotted to him. Therefore, the IEC Number cannot be used by anyone other the IEC holder himself/herself.
Use of IEC by the person other than IEC holder himself is a violation of the above provisions and would attract action under Section 8 and 11 of The Foreign Trade (Development and Regulation) Act, 1992, as amended in 2010, except in case importers or exporters are exempted from obtaining IEC and who use permanent (common) IEC Numbers under Para 2.8 of Handbook of Procedure, Vol.1, 2009-14.
Therefore, DGFT cautions importers/exporters as well as all other stake holders to comply with the provisions of FT(DR) Act and Rules made thereunder while using their IEC Number. Non-compliance/ violation of these provisions would attract action in the form of suspension/cancellation of IEC or imposition of penalty, as appropriate, under the relevant provisions of FT(DR) Act and Rules.
DGFT Policy Circular No. 6 (RE-2013)/2009-2014 , Dated: September 16 2013