Lawyers in Bangalore
THE FOREIGN TRADE (DEVELOMENT AND REGULATION) ACT, 1992
The FTDR Act of 1992 may be rightly called the Bible of any entrepreneur engaged in import-export business in India. The Act is the principal legislation governing imports and exports of goods and services from the territory of India. Foreign trade is the term used for the sale of goods and services across international borders, and the FTDR Act was brought into force to standardize and regulate the conduct of such business in India. The exports and imports can only take place under a licence from the Govt., and subject to the prohibitions and restrictions put in place by the Govt.
KEY FEATURES OF THE FTDR ACT
- The Act elaborately defines ‘import’ and ‘export’, separately with reference to goods and services.
- Central Govt given powers to formulate policies to increase exports and facilitate imports; prohibit or regulate specified classes of goods, etc.
- The Central Govt to formulate an Export-Import Policy for a five-year period, which it may amend in the meantime if need be.
- Central Govt has to appoint a Director General of Foreign Trade, to advise the Govt in formulating the EXIM Policy (now known as FTP or Foreign Policy).
- Mandatory Importer-Exporter Code Number granted by the Govt., without which no person must carry on any foreign trade, and which is liable to suspension or cancellation if the person contravenes any provision of the Act.
- The DGFT may grant or renew or refuse to grant/renew any licence to any person, and it is also liable to cancellation or suspension in case of default.
- The Govt is empowered to impose quantitative restrictions on imports of certain goods if it is satisfied that it is being imported in such high quantities as to threaten the domestic industry.
- The Govt may authorise any person to inspect the premises of any facility where storage or supply of imported/exported goods are kept, and they are conferred with the power of search and seizure.
- The Act imposes penalty on persons who contravene the provisions of the Act, and lay down modes of retrieving the amount if the payment is defaulted by the party.
- The Act also stipulates power of the Govt to impose special controls on the export and transfer of specified goods, services and technology; and penalties in case of contravention.
- The aggrieved party may prefer an Appeal to the DGFT against orders of a subordinate Officer, or to the Central Govt against orders of the DGFT.
- The powers of the Adjudicating authority include summoning of witnesses, requiring production of documents, issuing Commissions, etc.
- Central Govt may give exceptions or considerations to Special Economic Zones, in the application of provisions of the Act
RELEVANCE OF THE ACT
- Enormous powers granted to Central Govt to regulate imports and exports
- Repealed Imports and Exports (Control) Act, 1947
- Scheme of EXIM Policy introduced (now FTP)
- Appointment and powers of DGFT
- Supreme legislation w.r.t imports and exports
The Act was amended in 2010 via the FDR Amendment Act, and several provisions have undergone modifications, and the above article covers the provisions of the Amended Act.
Legal Resolved is resolved to give online free and paid legal help to determine legal issues by giving counsel and sentiment to individuals whose rights are encroached or require legal help with deference of different legal matters.