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An export licence is an official authorization issued by the competent government authority permitting an exporter to export specified goods to specified destinations subject to prescribed conditions. In India, export transactions are regulated primarily under the Foreign Trade (Development and Regulation) Act, 1992, the Foreign Trade Policy, procedures issued by the Directorate General of Foreign Trade (DGFT), and other laws relating to customs, foreign exchange and specific commodities. The statement that “an export licence holder cannot export through third party” refers to the principle that an export authorization granted to a particular exporter is generally meant to be used by that exporter and cannot simply be transferred to, or operated through, another exporter as a substitute for the authorized licence holder. An export licence is issued after considering the identity of the exporter, the nature of the goods, the destination, end use, quantity, value and other relevant circumstances. Therefore, the authorization is linked to the particular licence holder. The government does not issue such permission merely for the goods themselves; it also considers who is undertaking the export and whether that person satisfies the applicable regulatory requirements. Consequently, the licence holder cannot ordinarily permit another unrelated person to use the licence for making an export transaction in the licence holder’s place. The basic reason for this restriction is that an export licence is a regulatory instrument and not an ordinary commercial document that can be freely transferred. If licences could be used by third parties without authorization, the government would lose control over the identity of the actual exporter, the destination of sensitive ___ ___ ____ _______ _____.
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