[22 of 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 :—
(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.
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” mean 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.
Power of Central Government to make order and
Announce Export and import policy
Powers to make provisions relating to imports and
exports.
(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 (52 of 1962) and all the provisions of that Act shall
have effect accordingly.
Continuance of existing Orders.
All
Orders made under the Imports and Exports (Control) Act, 1947 (18 of 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.
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 like manner, amend that policy.
Appointment of Director General and his
functions.
(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.
Importer-Exporter Code Number.
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.
(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 cancellation of licence.
(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 enquiry, 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
cancelling, a licence shall lie in like manner as an appeal against an order
would lie under section 15.
Power relating to search and seizure.
(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 (2 of 1974) 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.
(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 any 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 or the goods or conveyance, as the case may be.
Penalty or confiscation not to interfere with other punishments.
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.
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 Gazette, authorise in this
behalf.
Giving of opportunity to the owner of the goods, etc.
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 desires, of being heard in the matter.
(1) Any
person aggrieved by any decision or order made by the 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 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 the 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 enquiries, 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.
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 person—
(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 and other authorities.
(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 (5 of
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 (2 of
1974).
(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:
Provided 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.
Protection of action taken in good faith.
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.
(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 condition 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.
(1) The
Imports and Exports (Control) Act, 1947 (18 of 1947), and the Foreign
Trade (Development and Regulation)
Ordinance, 1992 (11 of 1992), are hereby repealed.
(2) The
repeal of the Imports and Exports (Control) Act, 1947 (18 of 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.
(3) Notwithstanding
the repeal of the Foreign Trade (Development and Regulation) Ordinance, 1992
(11 of 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.