duties of xyz performing import and export
a partnership xyz who is basically performing the business of import/export enters into a contract with the manufacturer to import his goods in India. Will it acquire a license to sell those goods received by him? can he verify the originality of goods by opening them?
Posted by Tanaya.
Contributed by: Arnav
The partnership firm will not be required to obtain a license to sell the goods received by it from the manufacturer. There is no such prescription under the applicable laws of India which mandate an importer to acquire a license to sell the goods received by him under a contract with a manufacturer for importing the latter’s goods in India.
Under the Foreign Trade (Development and Regulation) Act, 1992 and the current Export and Import Policy, 2009-2014, all importers/exporters are required to obtain licenses in the manner prescribed therein for import/export of goods etc. But there is no provision either under the Foreign Trade (Development and Regulation) Act, 1992 or the current Export and Import Policy, 2009-2014 which mandates the importer to acquire a license to sell the goods received by him pursuant to a contract with a manufacturer for importing the latter’s goods in India. Also the importer can sell the goods received by him only if the contract subsisting between him and the manufacturer permits him to subject the goods to sale and the above should happen in accordance with the provisions of the said contract.
If the importer is going to subject the said goods to sale, then before proceeding with the sale he can verify the originality of the goods by opening them.
Book a phone consultation with a top-rated lawyer on Lawfarm.