Ans. An overview of the four major Acts governing the foreign trade would help in better understanding of the Export-Import Policy of the country as also its operation requirements. Let us now learn them.
Foreign
Trade (Development and Regulation) Act, 1992
The Foreign Trade (Development and Regulation) Act, 1992 and the Foreign Trade (Regulation) Rules, 1993 and the Foreign Trade (Exemptions from Application of Rules in Certain Cases) order, 1993 issued there under, replaced the earlier legal regime consisting of the Imports and Exports (Control) Act, 1947 and the Import (Control) Order, 1955 and the Export (Control) Order, 1988 issued there under and amended from time to time. With the operation of new legal regime, the era of foreign trade controls witnessed its demise.
The Primary objective of this Act is 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. The Export and Import Policy of India is issued under this Act and any amendments to the Policy provisions are also made there under. The permission for export and import is also given under this Act by granting the Importer-Exporter Code Number (IEC). This IEC number has also dispensed with the need of the Code Number for Export (CNX). The maximum punishment for the commitment of any offence, contravention of any law, harming country's trade relations or bringing disrepute to the credit or the goods of the country while conducting the export-import trade transactions, is also operated through the suspension and/or cancellation of the Importer-Exporter Code Number.
Foreign
Exchange Management Act, 1999
The exchange control in India was introduced on September 3, 1939 as a war time measure in the early period of Second World War under the powers conferred by the Defense of India Rules. The emergency powers were subsequently replaced by the Foreign Exchange Regulations Act, 1947 which came into operation on March 25, 1947. This Act witnessed comprehensive revision in the wake of the changed needs of the economy during the post-independence period and was replaced by the Foreign Exchange Regulations Act, I973 known as FERA. The onset of the era of liberalization of the external sector of the economy and the industrial licensing followed by Partial Convertibility of Rupee and full convertibility on current account necessitated the need for further extensive amendments in the FERA which were brought about by the Foreign Exchange Regulations (Amendment) Act, 1993. FERA has been replaced by Foreign Exchange Management Act (FEMA), 1999.
FEMA has been brought to consolidate and amend the law relating to foreign exchange. The basic objective of this act is to facilitate external trade and payments and to promote the orderly development and maintenance of foreign exchange market in India. This act deals with various regulations of foreign exchange like holding and transactions of foreign exchange, export of goods and services, realization and repatriation of foreign exchange, etc. The role of authorized person, the provisions of contravention and penalties and the procedures of adjudication and appeal and the power of directorate enforcement are dealt at great length in this act.
The
Customs Act, 1962
The consolidated and self-contained Customs Act, 1962 came into operation on December 13, 1962. Re-pealing the earlier three Acts known as Sea Customs Act 1878 , Land Customs Act 1924 and the Aircraft Act 1934, each one of which was related to a particular mode of transportation. This comprehensive Act provides the legal framework, guidelines and procedures related to all situations emerging from the export and import trade transactions.
The primary objectives of this Act are to (a) regulate the genuine export and import trade transactions in keeping with the national economic policies and objectives, (b) check smuggling, (c) collect revenue, (d) undertake functions on behalf of other agencies, and (e) gather i trade statistics. Details about the rate and nature of customs duty leviable on any item, as decided by the Central government, are specified in the First and Second Schedule of the Customs Tariff Act, 1975 with regard to imports and exports, respectively.
Export
(Quality Control and Inspection) Act, 1963
The Export (Quality Control and inspection) Act was enacted in the year 1963 with a view to strengthening the export trade through quality control and pre-shipment inspection, the Act empowers the Government not only to notify the commodities which may be subject to compulsory quality control and or inspection prior to export but also specify the type of quality control or inspection. The Act prohibits the export of sub-standard goods as well as the goods which do not fulfill the requirements as laid down under the Act.
For smooth operation of the Export (Quality Control and Inspection) Act, 1963, the Government of India established the Export Inspection Council (EIC) on January 1, 1964, and the Export inspection Agencies (EIAs). While the EIC acts as an advisory body to the Government on matters related to quality control and inspection, the (EIAs) are the actual agencies which inspect the goods and issue the export-worthiness certificates.
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