Foreign Trade (Development and Regulation) Act, 1992
5. Suspension and cancellation of Importer Exporter Code Number.—
(1) Where –
(a) Any person has contravened any law relating to Central excise or customs or foreign exchange or has committed any other economic offence under any other law for the time being in force as may be specified by the Central Government by notification in the Official Gazette, or
(b) The Director General has reason to believe that any person has made an export or import in a manner gravely prejudicial to the trade relations of India with any foreign country or to the interests of other person engaged in imports or exports or has brought disrepute to the credit or the goods of the country, the Director General may call for the record or any other information from that person and may, after giving to that person a notice in writing informing him of the grounds on which it is proposed to suspend or cancel the Importer exporter Code Number and giving him a reasonable opportunity of making a representation in writing within such reasonable time as may be specified in the notice and, if that person so desires, of being heard, suspend for a period, as may be specified in the order, or cancel the Importer exporter Code Number granted to that person.
(2) Where any Importer exporter Code Number granted to a person has been suspended or cancelled under sub section (1), that person shall not be entitled to import or export any good except under a special license, granted, in such manner and subject to such conditions as may be prescribed, by the Director General to that person.