APPENDIX  38 A

 

THE FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992 No.22 OF 1992

 

The following Act of Parliament received the assent of the President on the 7th August, 1992, and is hereby published for general information:-

 

                            

 

THE FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992

No.22 OF 1992

(7th August, 1992)

 

An Act to provide  for the development  and  regulation  of foreign  trade  by facilitating imports into,  and  augmenting exports  from  India  and for matters connected  therewith  or Incidental thereto.

 

Be it  enacted by Parliament in the Forty-third Year  of  the Republic of India as follows:-

 

            

 

CHAPTER I

 

PRELIMINARY

 

Short title and commencement

 

1.     (1) This  Act  may  be called the Foreign Trade  (Development  and  Regulation) Act, 1992.

 

(2) Sections  11  to  14  shall come into force at  once  and  the remaining  provisions of this Act shall be deemed to have come into force on the 19th day of June 1992.

 

Definitions.

 

2.     In this Act, unless the context otherwise requires:-

 

(a)     "Adjudicating  Authority" means the authority  specified in, or under, section 13;

 

(b)     "Appellate Authority" means the authority specified in, or under, sub-section (1) of section 15;

 

(c)      "conveyance"  means any vehicle, vessel, aircraft or any other means of transport including any animal;

 

(d)     "Director General" means the Director General of Foreign Trade appointed under section 6;

 

(e)     "import"  and "export" means respectively bringing into, or taking out of, India any goods by land.  sea or air;

 

(f)       "Importer-exporter  Code  Number" means the Code  Number granted under section 7;

 

(g)     "licence"  means  a  licence  to import  or  export  and includes  a  customs  clearance  permit  and  any  other permission issued or granted under this Act;

 

(h)     "Order"  means any order made by the Central  Government under section 3;  and

 

(i)       "Prescribed"  means prescribed by rules made under  this Act.

 

 

 

 

 

 

 

CHAPTER II

 

POWER OF CENTRAL GOVERNMENT TO MAKE ORDERS AND ANNOUNCE EXPORT

AND IMPORT POLICY

 

Powers to make provision relating to imports and exports.

 

3.      (1)    The  Central Government may by Order published in  the Official  Gazette, make provision for the  development and  regulation  of  foreign   trade  by  facilitating imports and increasing exports.

 

        (2)      The Central Government may also, by Order published in the  Official Gazette, make provision for prohibiting. restricting  or otherwise regulating, in all cases  or in  specified  classes  of cases and subject  to  such exceptions,  if  any,  as may be made by or  under  the Order, the import or export of goods.

 

        (3)      All  goods  to which any Order under  sub-section  (2) applies  shall  be  deemed to be goods the  import  or export  of which has been prohibited under section  11 of  the  Customs Act, 1962 and all the  provisions  of that Act shall have effect accordingly.

 

Continuance of existing orders

 

4.     All   Orders  made  under   the  Imports  and  Exports (Control)  Act,  1947 and in force immediately  before the commencement of this Act shall, so far as they are not  inconsistent  with  the provisions of  this  Act, continue  to  be in force and shall be deemed to  have been made under this Act.

 

Export and import policy.

 

5.     The  Central  Government  may,   from  time  to  time, formulate and announce by notification in the Official Gazette, the export and import policy and may also, in the like manner, amend that policy.

 

Appointment of Director General and his functions.

 

6.    (1)    The  Central Government may appoint any person to be the  Director  General  of  Foreign  Trade  for  the purposes of this Act.

 

(2)  The  Director  General  shall   advise  the  Central Government  in  the  formulation of the  export  and import  policy and shall be responsible for carrying out that policy.

 

(3)   The  Central  Government may, by Order published  in the   Official  Gazette  direct   that   any   power exercisable  by  it under this Act (other  than  the powers  under sections 3,5,15,16 and 19) may also be exercised,  in  such  cases   and  subject  to  such conditions,  by  the Director General or such  other officer  subordinate to the Director General, as may be specified in the Order.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER III

 

IMPORTER-EXPORTER CODE NUMBER AND LICENCE

 

Importer-exporter Code Number.

 

7.             No person shall make any import or export except under an  Importer-exporter  Code  Number   granted  by  the Director  General  or  the officer authorised  by  the Director  General  in this behalf, in accordance  with the procedure specified in this behalf by the Director General.

 

Suspension and cancellation of Importer-exporter Code Number.

 

8.      (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 persons 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 goods  except under a special licence, granted, in such manner and  subject  to  such   conditions  as  may  be prescribed,  by  the  Director General  to  that person.

 

Issue, suspension and concellation of licence.

 

9.    (1)    The  Central  Government  may levy fees, subject  to  such exceptions,  in respect of such person or class of persons making  an application for a licence or in respect of  any licence  granted  or  renewed  in such manner  as  may  be prescribed.

 

(2)   The  Director General or an officer authorised by him may, on  an application and after making such inquiry as he may think  fit,  grant or renew or refuse to grant or renew  a licence to import or export such class or classes of goods as  may  be  prescribed, after recording  in  writing  his reasons for such refusal.

 

(3)   A licence granted or renewed under this section shall -

 

(a)   be in such form as may be prescribed;

 

(b)   be  valid for such period as may be specified therein; and

 

(c)   be  subject to such terms, conditions and restrictions as  may  be prescribed or as specified in the  licence with   reference   to  the   terms,   conditions   and restrictions so prescribed.

 

(4)   The  Director  General  or the  officer  authorised  under sub-section  (2) may, subject to such conditions as may be prescribed for good and sufficient reasons, to be recorded in  writing  suspend or cancel any licence  granted  under this Act:

 

Provided  that no such suspension or cancellation shall be made  except  after  giving the holder of  the  licence  a reasonable opportunity of being heard.

 

(5)   An  appeal against an order refusing to grant, or renew or suspending  or  canceling,  a licence shall lie  in  like manner  as  an  appeal against an order  would  lie  under section 15.

 

 

 

 

 

 

CHAPTER IV

 

SEARCH, SEIZURE, PENALTY AND CONFISCATION

 

Power relating to search and seizure

 

 

10.  (1)   The  Central  Government  may,  by  notification  in   the Official Gazette, authorise any person for the purposes of exercising  such  powers  with respect  to  entering  such premises  and  searching  inspecting and seizing  of  such goods,  documents, things and conveyances subject to  such requirements and conditions, as may be prescribed.

 

(2)   The  provisions  of the Code of Criminal  Procedure,  1973 relating to searches and seizures shall, so far as may be, apply to every search and seizure made under this section.

 

Contravention of provisions of this Act, rules, orders  and export and import policy.

 

 

11.  (1)   No  export or import shall be made by any person except in accordance  with the provisions of this Act, the rules and orders  made  thereunder and the export and import  policy for the time being in force.

 

(2)   Where  any  person makes or abets or attempts to make  any export or import in contravention of any provision of this Act  or any rules or orders made thereunder or the  export and  import  policy, he shall be liable to a  penalty  not exceeding  one thousand rupees or five times the value  of the goods in respect of which any contravention is made or attempted to be made, whichever is more.

 

(3) Where  any person, on a notice to him by the  Adjudicating Authority,  admits  any  contravention,  the  Adjudicating Authority  may,  in such class or classes of cases and  in such  manner  as may be prescribed, determine, by  way  of settlement, an amount to be paid by that person.

 

(4)   A  penalty imposed under this Act may, if it is not  paid, be  recovered  as  an  arrear  of  land  revenue  and  the Importer-exporter  Code  Number of the  person  concerned, may, on failure to pay the penalty by him, be suspended by the Adjudicating Authority till the penalty is paid.

 

(5)   Where any contravention of an provision of this Act or any rules  or orders made thereunder or the export and  import policy  has been, is being or is attempted to be made, the goods  together  with any package, covering or  receptacle and  any  conveyances shall, subject to such  requirements and  conditions  as  may  be   prescribed,  be  liable  to confiscation by the Adjudicating Authority.

 

(6)   The  goods or the conveyance confiscated under sub-section (5) may be released by the Adjudicating Authority, in such manner   and  subject  to  such   conditions  as  may   be prescribed,  on  payment  by the person concerned  of  the redemption  charges equivalent to the market value of  the goods or conveyance, as the case may be.

 

Penalty or confiscation not  to  interfere   with   other punishments.

 

12.  No  penalty imposed or confiscation made under this Act  shall prevent  the  imposition of any other punishment to which  the person  affected thereby is liable under any other law for the time being in force.

 

Adjudicating Authority

 

13.  Any penalty may be imposed or any confiscation may be adjudged under  this  Act by the Director General or, subject  to  such limits  as  may  be specified, by such other  officer  as  the Central  Government  may  by   notification  in  the  Official Gazettte, authorise in this behalf.

 

Giving of opportunity to the owner of the goods, etc.

 

14.  No order imposing a penalty or of adjudication of confiscation shall  be made unless the owner of the goods or conveyance  or other person concerned, has been given a notice in writing -

 

(a)  informing  him of the grounds on which it is proposed  to impose  a  penalty  or  to   confiscate  such  goods   or conveyance; and

 

(b)  to   make  a  representation  in  writing   within   such reasonable time as may be specified in the notice against the  imposition  of  penalty  or  confiscation  mentioned therein,  and,  if he so desired, of being heard  in  the matter.

 

 

 

CHAPTER V

 

APPEAL AND REVISION

 

15.  (1)   Any person aggrieved by any decision or order made by the Appeal.  Adjudicating Authority under this Act may prefer an appeal:-

 

(a)   where  the  decision or order has been made by  the Director General, to the Central Government,

 

(b)   where  the  decision or order has been made  by  an officer subordinate to the Director General, to the Director  General or to any officer superior to the Adjudicating  Authority authorised by the  Director General to hear the appeal, within  a period of forty-five days from the date on which the decision or order is served on such person:

 

        Provided  that the Appellate Authority may, if it is satisfied that  the  appellant  was prevented by sufficient  cause  from preferring  the appeal within the aforesaid period, allow such appeal to be preferred within a further period of thirty days:

 

       Provided  further  that  in the case of an  appeal  against  a decision or order imposing a penalty or redemption charges, no such  appeal shall be entertained unless the amount of penalty or redemption charges has been deposited by the appellant;

 

        Provided  also  that,  where  the Appellate  Authority  is  of opinion  that the deposit to be made will cause undue hardship to the appellant, it may, at its discretion dispense with such deposit  either unconditionally or subject to such  conditions as it may impose.

 

(2)   The   Appellate  Authority  may,   after  giving  to  the appellant  a reasonable opportunity of being heard, if he so  desires, and after making such further inquiries,  if any, as it may consider necessary, make such orders as it thinks  fit,  confirming,  modifying   or  reversing  the decision  or order appealed against, or may send back the case  with  such  directions as it may think fit,  for  a fresh adjudication or decision, as the case may, be after taking additional evidence if necessary:

 

Provided  that  an  order enhancing or imposing a  penalty  or redemption  charges  or confiscating goods of a greater  value shall  not be made under this section unless the appellant has been  given an opportunity of making a representation, and  if he so desires of being heard in his defence.

 

(3)   The order made in appeal by the Appellate Authority shall be final.

Revision.

 

16.  The  Central  Government in the case of any  decision  or order,  not being a decision or order made in an  appeal, made  by the Director General, or the Director General in the  case  of any decision or order made by  any  officer subordinate  to  him,  may on its or his  own  motion  or otherwise,  call  for  and  examine the  records  of  any proceeding  in  which a decision or an order  imposing  a penalty   or   redemption     charges   or   adjudicating confiscation  has  been made and against which no  appeal has  been preferred, for the purpose of satisfying itself or  himself,  as the case may be, as to the  correctness, legality  or propriety of such decision or order and make such orders thereon as may be deemed fit:

 

Provided  that no decision or order shall be varied under this  section  so as to prejudicially affect  any  person unless such

 

(a)   has,  within a period of two years from the date  of such  decision  or order, received a notice to  show cause  why  such  decision  or order  shall  not  be varied, and

 

(b)   has  been  given a reasonable opportunity of  making representation and, if he so desires, of being heard in his defence.

 

Powers of Adjudicating an other Authorities.

 

17.   (1)  Every  authority  making any adjudication or hearing  any appeal  or  exercising any powers of revision under  this Act  shall have all the powers of a civil court under the Code  of  Civil Procedure, 1908, while trying a suit,  in respect of the following matters, namely:-

 

(a)  summoning and enforcing the attendance of witnesses;

 

(b)  requiring  the  discovery  and   production  of  any document;

 

(c)  requisitioning  any  public record or  copy  thereof from any court or office;

 

(d)  receiving evidence on affidavits;  and

 

(e)  issuing commissions for the examination of witnesses or documents.

 

(2)   Every  authority  making any adjudication or hearing  any appeal  or  exercising any powers of revision under  this Act  shall be deemed to be a civil court for the purposes of  sections  345  and  346  of  the  Code  of   Criminal Procedure, 1973.

 

(3)   Every  authority  making any adjudication or hearing  any appeal  or  exercising any powers of revision under  this Act  shall  have  the  power to make such  orders  of  an interim  nature  as  it may think fit and may  also,  for sufficient  cause,  order  the stay of operation  of  any decision or order.

 

(4)   Clerical  or  arithmetical  mistakes in any  decision  or order  or errors arising therein from any accidental slip or omission may at any time be corrected by the authority by  which  the decision or order was made, either on  its own motion or on the application of any of the parties:

 

Provide  that  where any correction proposed to  be  made under   this   sub-section  will   have  the  effect   of prejudicially  affecting  any person, no such  correction shall  be  made  except  after giving to  that  person  a reasonable  opportunity of making a representation in the matter  and  no such correction shall be made  after  the expiry  of two years from the date on which such decision or order was made.

 

CHAPTER VI

 

MISCELLANEOUS

 

Protection of action taken in good faith

 

18. No  order made or deemed to have been made under this Act shall  be  called in question in any court, and no  suit, prosecution  or other legal proceeding shall lie  against any person for anything in good faith done or intended to be  done  under this Act or any order made or  deemed  to have been made thereunder.

 

Power to make rules.

 

19.   (1)  The  Central  Government may, by notification in  the Official  Gazette,  make rules for carrying  out  the provisions of this Act.

 

(2)   In   particular,  and  without   prejudice   to   the generality  of  the foregoing power, such  rules  may provide  for  all  or any of the  following  matters, namely:-

 

(a)   the manner in which and the conditions subject to which  a  special  licence may  be  issued  under sub-section (2) of section 8;

 

(b)   the exceptions subject to which and the person or class  of persons in respect of whom fees may  be levied  and the manner in which a licence may  be granted  or  renewed  under  sub-section  (1)  of section 9;

 

(c)   the class or classes of goods for which a licence may be granted under sub-section (2) of section-9;

 

(d)   the  form in which and the terms, conditions  and restrictions  subject  to  which licence  may  be granted under sub-section (3) of section 9;

 

(e)   the  conditions subject to which a licence may be suspended  or cancelled under sub-section (4)  of section 9;

 

(f)    the   premises,  goods,   documents,  things  and conveyances   in  respect  of   which   and   the requirements  and  conditions  subject  to  which power  of  entry, search, inspection and  seizure may be exercised under sub-section (1) of section 10;

 

(g)   the  class or classes of cases for which and  the manner  in which an amount by way of  settlement, may  be  determined  under sub-  section  (3)  of section 11;

 

(h)   the  requirements and conditions subject to which goods   and  conveyances  shall   be  liable   to confiscation under sub-section (5) of section 11;

 

(i)    the manner in which and the conditions subject to which  goods  and conveyances may be released  on payment  of redemption charges under  sub-section (6) of section 11;  and

 

(j)    any  other  matter  which is to be,  or  may  be, prescribed,  or in respect of which provision  is to be, or may be, made by rules.

 

(3)   Every  rule  and  every  Order made  by  the  Central Government  under this Act shall be laid, as soon  as may  be  after  it  is made,  before  each  house  of Parliament,  while  it  is in session,  for  a  total period  of thirty days which may be comprised in  one session  or  in two or more successive sessions,  and if,  before  the  expiry of the  session  immediately following  the  session  or the  successive  sessions aforesaid,   both   Houses  agree   in   making   any modification  in the rule or the Order or both Houses agree  that the rule or the Order should not be made, the  rule  or  the Order, as the case may  be,  shall thereafter  have effect only in such modified form or be  of  no effect as the case may be;   so,  however, that  any  such  modification or annulment  shall  be without  prejudice  to  the   validity  of   anything previously done under that rule or the Order.

 

Repeal and saving

 

20.  (1)   The  Imports and Exports (Control) Act, 1947 and  the Foreign Trade (Development and Regulation) Ordinance, 1992 are hereby repealed.

 

(2)   The  repeal of the Imports and Exports (Control) Act, 1947 shall however, not affect -

 

(a)   the  previous operation of the Act so repealed or  anything duly done or suffered thereunder; or

 

(b)   any  right, privilege, obligation or liability acquired  accrued or incurred under the Act so repealed;  or

 

(c)   any   penalty,  confiscation   or   punishment incurred in respect of any contravention under the Act so repealed;  or

 

(d)   any  proceeding  or remedy in respect  of  any such  right, privilege obligation,  liability, penalty,   confiscation  or    punishment   as aforesaid, and  any such proceeding or remedy may be instituted, continued   or  enforced  and   any   such   penalty, confiscation  or punishment may be imposed or made as if that Act had not been repealed.

 

Ord.  11 of 1992.

 

(3)   Notwithstanding  the  repeal  of  the  Foreign  Trade (Development  and  Regulation)    Ordinance,    1992, anything  done  or  any action taken under  the  said Ordinance shall  be deemed to have been done or taken under the corresponding provisions of this Act.