[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
1. Short title and commencement.—
This Act may be called the Foreign Trade (Development and Regulation)
Act, 1992.
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.
2. Definitions.—
In this Act, unless the context otherwise requires, -
"Adjudicating Authority" means the authority specified in,
or under, section 13;
"Appellate Authority" means the authority specified in, or
under, Subsection (1) of section 15;
"conveyance" means any vehicle, vessel, aircraft or any
other means of transport including any animal;
"Director General" means the Director General of Foreign
Trade appointed under section 6;
"import" and "export" means respectively bringing
into, or taking out of, India any goods by land, sea or air;
"Importer-exporter Code Number" means the Code Number
granted under section 7;
"licence" means a licence to import or export and includes
a customs clearance permit and any other permission issued or granted under this Act;
"Order" means any Order made by the Central Government
under section 3; and
"prescribed" means prescribed by rules made under this Act.
CHAPTER II
POWER OF CENTRAL GOVERNMENT TO MAKE ORDERS AND ANNOUNCE EXPORT AND IMPORT POLICY
3. Powers to make provisions relating to imports and exports.—
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.
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.
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.
4. 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.
5. Export and import policy.—
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.
6. Appointment of Director General and his functions.—
The Central Government may appoint any person to be the Director
General of Foreign Trade for the purposes of this Act.
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.
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
7. 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.
8. Suspension and cancellation of Importer-exporter Code Number.-
Where-
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
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.
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.
9. Issue, suspension and cancellation of licence.—
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.
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.
A licence granted or renewed under this section shall -
be in such form as may be prescribed;
be valid for such period as may be specified therein; and
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.
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.
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.
CHAPTER IV
SEARCH, SEIZURE, PENALTY AND CONFISCATION
10. Power relating to search and seizure.—
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.
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.
11. Contravention of provisions of this Act, rules, orders and
export and import policy.—
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.
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.
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.
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.
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.
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.
12. 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.
13. Adjudicating Authority.—
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.
14. 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 —
informing him of the grounds on which it is proposed to impose a
penalty or to confiscate such goods or conveyance; and
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.
CHAPTER V
APPEAL AND REVISION
15. Appeal.—
Any person aggrieved by any decision or order made by the
Adjudicating Authority under this Act may prefer an appeal,-
where the decision or order has been made by the Director General, to
the Central Government;
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 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.
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.
The order made in appeal by the Appellate Authority shall be final.
16. Revision.—
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—
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
has been given a reasonable opportunity of making representation and,
if he so desires, of being heard in his defence.
17. Powers of Adjudicating and other Authorities.—
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 : -
summoning and enforcing the attendance of witnesses;
requiring the discovery and production of any document;
requisitioning any public record or copy thereof from any court or
office;
receiving evidence on affidavits; and
issuing commissions for the examination of witnesses or documents.
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).
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.
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.
CHAPTER VI
MISCELLANEOUS
18. 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.
19. Power to make rules.—
The Central Government may, by notification in the Official Gazette,
make rules for carrying out the provisions of this Act.
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:-
the manner in which and the conditions subject to which a special
licence may be issued under sub-section (2) of section 8;
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;
the class or classes of goods for which a licence may be granted
under sub-section (2) of section 9;
the form in which and the terms, conditions and restrictions subject
to which licence may be granted under sub-section (3) of section 9;
the conditions subject to which a licence may be suspended or
cancelled under sub-section (4) of section 9;
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;
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;
the requirements and conditions subject to which goods and
conveyances shall be liable to confiscation under sub-section (5) of section 11;
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
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.
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.
20. Repeal and savings.—
The Imports and Exports (Control) Act, 1947 (18 of 1947), and the
Foreign Trade (Development and Regulation) Ordinance, 1992 (Ord. 11 of 1992) are hereby
repealed.
The repeal of the Imports and Exports (Control) Act, 1947 (18 of
1947) shall, however, not affect, -
the previous operation of the Act so repealed or anything duly done
or suffered thereunder; or
any right, privilege, obligation or liability acquired, accrued or
incurred under the Act so repealed; or
any penalty, confiscation or punishment incurred in respect of any
contravention under the Act so repealed; or
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.
Notwithstanding the repeal of the Foreign Trade (Development and
Regulation) Ordinance, 1992 (Ord. 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.
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