Rules 8 and 10 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 8 lets the licensing authority amend a licence, on its own motion or on the licensee's application, as necessary or to rectify an error or omission. Rule 10 lets the Director General or the licensing authority cancel a licence by written order on four grounds: fraud, suppression of facts or misrepresentation; breach of a condition; tampering; and contravention of customs or foreign exchange law. The 2015 Amendment Rules widened "licence" in both rules to include certificates, scrips and instruments, and added "or transferee" to rule 10. This article explains both rules as per the Rules as notified in 1993 read with the 2015 Amendment Rules. Rule 9, on suspension, has its own article.
Rule 8: the licensing authority may amend any licence, on its own motion or on the licensee's application, "in such manner as may be necessary or to rectify any error or omission". Rule 10: the Director General or the licensing authority may cancel by order in writing if the licence was obtained by fraud, suppression of facts or misrepresentation, the licensee or transferee breached a condition, tampered with it, or contravened customs or foreign exchange law. Section 9(4) requires a hearing before cancellation.
What changed in 2015
For rule 8 the 2015 Amendment Rules replaced the word "licence", in the heading and in the rule, with "licence, certificate, scrip or any instrument bestowing financial or fiscal benefits". For rule 10 they made the same replacement in the heading and in clauses (a) to (d), and in clauses (b), (c) and (d) replaced "licensee" with "licensee or transferee". In this article "licence" stands for the whole phrase.
Rule 8: amendment of licence
If a licence error is holding up a shipment, a restricted items import-export licence adviser can help you prepare the application for amendment.
Rule 8 reads: "The licensing authority may of its own motion or on an application by the licensee, amend any licence in such manner as may be necessary or to rectify any error or omission in the licence."
| Feature | What the rule says |
|---|---|
| Who | The licensing authority (rule 2(d): an authority authorised under section 9(2)) |
| On what trigger | Its own motion, or the licensee's application |
| What it may do | Amend "in such manner as may be necessary", or rectify "any error or omission" |
| Limits | None are stated in the rule |
Two points follow.
- Either side can start it. If a licence carries a wrong description, quantity, name or address, the licensee can apply. If the authority finds the mistake, it can correct it without an application.
- The power is wide. "In such manner as may be necessary" is not limited to errors. The rule does not say that an amendment which changes the licence against the licensee requires notice or a hearing. Where the effect is adverse, the licensee should ask in writing for a chance to be heard, and the reader should check section 9 and the Policy for any procedure.
The Rules give no form or procedure for an amendment. Any procedure in the Policy or the Handbook of Procedures is not set out here; check the current text.
Example: Lakeview Impex (an invented firm) notices that its import licence gives the quantity as 5,000 units in figures and 500 units in words. It applies to the licensing authority under rule 8 to rectify the error. The authority may amend the licence to correct the omission or error. The rule does not give a time within which it must act.
Rule 10: cancellation of licence
The text
"The Director General or the licensing authority may by an order in writing cancel any licence granted under these rules if—
(a) the licence has been obtained by fraud, suppression of facts or misrepresentation; or
(b) the licensee has committed a breach of any of the conditions of the licence; or
(c) the licensee has tampered with the licence in any manner; or
(d) the licensee has contravened any law relating to customs or foreign exchange or the rules and regulations relating thereto."
After 2015, "licensee" in clauses (b), (c) and (d) reads "licensee or transferee".
The four grounds
| Clause | Ground | Notes |
|---|---|---|
| (a) | Licence obtained by fraud, suppression of facts or misrepresentation | It looks at how the licence was obtained; the licensee is not named, so it is the licence that is tainted |
| (b) | Licensee or transferee has breached a condition of the licence | Conditions include those in rule 6 and any in the licence itself; see rule 6 |
| (c) | Licensee or transferee has tampered with the licence in any manner | "In any manner" is wide |
| (d) | Licensee or transferee has contravened any law relating to customs or foreign exchange, or the rules and regulations relating to it | Another law's contravention is enough; the rule does not say the contravention must relate to this licence |
Note the form: the cancellation is "by an order in writing", and the power belongs to the Director General or the licensing authority. The word is "may".
"Licensee or transferee"
The 2015 words "or transferee" matter. Rule 6 says a licence cannot be transferred except in accordance with the Policy. Where the Policy allows a transfer, the person who receives the licence is a transferee, and rule 10 now reaches the transferee's breach, tampering or contravention. The sources consulted do not set out the Policy's transfer provisions; see our article on rule 6 and check the Policy.
How rule 10 differs from rule 7 and rule 9
Rule 9(2) shows that cancellation is expected to be a proceeding: the authority initiates it and may suspend the licence in the meantime.
What rule 10 does not say, and what section 9(4) adds
Rule 10 states no notice, hearing or time limit. The Act does. Section 9(4) allows the Director General, or the officer authorised under section 9(2), subject to conditions as may be prescribed, "for good and sufficient reasons, to be recorded in writing", to suspend or cancel a licence, and the proviso says no suspension or cancellation shall be made "except after giving the holder of the licence a reasonable opportunity of being heard". Section 9(4) as amended in 2010 refers to a licence, certificate, scrip or any instrument. Section 19(2)(e) lets rules prescribe the conditions. See our article on section 9.
So the order of events should be: notice of the ground, reasonable opportunity to be heard, reasons recorded in writing, order in writing. Section 14D is a different case, for specified goods, services or technology, where suspension or cancellation can come first and the hearing follows within six months; see our article on sections 14C to 14E.
An order refusing, suspending or cancelling a licence can be appealed in the same way as under section 15 (section 9(5)); see section 15.
Example: Summit Overseas (an invented firm) is told that its licence will be cancelled because it is said to have breached a condition by exporting imported goods without permission. Under section 9(4) it must be given a reasonable opportunity of being heard before cancellation. If cancellation follows, the order must be in writing under rule 10, with reasons recorded in writing under section 9(4), and Summit can appeal as under section 15.
Need help with an amendment or cancellation?
If your licence needs correction, or you have a notice proposing cancellation, our restricted items import-export licence service can help you prepare the application or the written reply and check the hearing and appeal steps. Later amendments to the Act, the Rules and the Policy should be checked.
Key takeaways
- Rule 8 lets the licensing authority amend a licence on its own motion or on the licensee's application, as necessary or to rectify an error or omission.
- Rule 10 lets the Director General or the licensing authority cancel by written order on four grounds: fraud, suppression or misrepresentation; breach of a condition; tampering; contravention of customs or foreign exchange law.
- Since 2015 clauses (b), (c) and (d) of rule 10 speak of "licensee or transferee".
- Section 9(4) requires reasons recorded in writing and a reasonable opportunity of being heard before cancellation; section 9(5) gives an appeal as under section 15.
- Section 14D is a separate rule for specified goods, services or technology.
Read next
- Rule 9: suspension of licence
- Rule 7: refusal of licence and recovery of benefits
- Section 9: issue, suspension and cancellation of licence
- Rule 6: conditions of licence
Disclaimer: Based on the Foreign Trade (Development and Regulation) Act, 1992 as enacted read with the Amendment Act of 2010, and on the Foreign Trade (Regulation) Rules, 1993 as notified read with the Amendment Rules of 2015, as consulted on 2 October 2026. Later amendments, the current Foreign Trade Policy and the Handbook of Procedures should be checked. This article is general information, not legal advice; check the official text before acting.