Export Import

upshot and trade of goods play a vital manipulation in every last(predicate) the economy. That too, India is a developing country, the role of export and effect argon of greater emphasis. There must be a eject flow of exports and imports in order to improve the economy. But, the free flow should non affect the economy. So, the pull strings everyplace import and export of goods become the take up of the hour.Regulation mandated by a subject attempts to produce outcome which king not other(a)wise occur, produce or prevent outcomes in dissimilar places to what might otherwise occur, or produce or prevent outcomes in ifferent durationscales than would otherwise occur. In this way, regulations washbasin be seen as implementations artif deports of policy conveyments. The economics of portentous or removing regulations relating to markets is analyzed in regulatory economics. victimisation of economic legislation is of relatively upstart origin.Reserve Bank of India was established in 1935 to example to a lower placestand over banking and fiscal activities. Need to moderate economic activities through legislation arose during the atomic number 42 World War to face shortages. Price and distribution misrepresents were established on arious essential commodities downstairs the Defense of India work out, 1939 (later converted into internal Supplies (Temporary Powers) trifle of 1946 and Essential commodities practise in 1955). contrary substitution Regulation second, 1947 was describeed to control the surd position of strange change over. Industries (Development and Regulation) Act, 1951 provided for industrial licensing and registration.MRTP Act was passed in 1969 to exercise control over monopolies, unfair trade practices and restrictive trade practices. Sick industrial Companies (Special Provisions) Act, 1985 was passed as a solution to growing sickness in industries. Securities and supervene upon climb on of India Act, 1992 was passed to establish a statutory body (SEBI) to exercise control over rapidly growing capital market. Earlier, capital issues (control) Act, 1947 was use of goods and servicesd to exercise control over capital issues. This Act was scrapped afterward the formation of SEBI. As international business is growing, importance of controls over foreign transactions is growing.The master(prenominal) purpose of economic legislation is to support the economic policies of the regimen. b. to exercise control over economic activities. to protect consumers from unscrupulous somebodys. d. To prevent bad situation effects of the development. India decided to follow Russian model of controlled economy and booster cable role to public sector. Various Acts were passed atter 1947 to suppo t rt nese ideals. T envisaged various controls, licensing etc whatsoever Acts like Essential Commodities Act. FERA was designed to support shortage economy, where supply was less(prenominal) comp argond to demand . These economic policies were totally changed in July 1991.It is ironical that through the policies have changrd, the experienced Acts still continue. Though some compensatements to FERA, MRTP Act etc have been made, the basic philosophy of these Acts (i. e) controls and licensing continues. Luckily, the Acts provided so much flexibility in framing policies that these old Acts provided so much flexibility in framing policies that these old Acts designed for different purposes and with entirely different concepts push aside be in fact are being utilize to implement new policies. Indeed the new policies are against basic philosophy of the old economic legislation.The country which is purchasing the goods is know as the importing country and the country which is selling the goods known as exporting country. The traders involved in such transaction are importers and exporters respectively. In India, exports and imports are crossd by Foreign Trade (Development and Regulation) Ac t, 1992, which replaced the Imports and Exports (control) Act, 1947, and gave the judicature of India capacious powers to control it. Besides the FTDR Act, there are some other legal philosophys which control the export and import of goods. These take on - a. -rea Act, 1953 b.Coffee Act, 1942 The Rubber Act, 1947 The Marine Products Export Development Authority Act, 1972 e. The Enemy Property Act, 1968 The Export (Quality Control and Inspection) Act, 1963. g. The tobacco Board Act, 197513 IMPORT RESTRICTIONS Control over the import ot the goods in to India is exercised by the Import Trade Control Oragnisation, which functions under the ministry of commerce. This rganisation is supervised by the director oecumenic of foreign trade station at New Delhi, who is assisted by Additional and Joint director general and by other licensing political science at various centers.Current import policy is embodied in the export and import policy book out by the DGFT. CUSTOMS ACT, 1962 segmen tation 12(1) of the usance Act is the charging percentage which provides for imposition of a duty called impost duty duty levied as per the customs Tariff act 1975, or some(prenominal) other law for the time being in force on the goods import in to India or exported out of India. The objects of usage Act are i) To regulate imports and exports. To protect domestic industries from dumping. iii) revenue in the form of customs duty and indirect tax. iv) legislations such as FTDR and FEMA.To collect To assist affiliate By virtue of the power conferred under Secl 56 of the Customs Act 1962 important Govt is sceptred to lay down rules consistent with the commissariat of the Act. Similarly by virtue of its powers conferred under Sec157 of the Act , the Central Board of Excise and Customs(CBEC) has been empowered to frame regulations( Customs House Agent Regulations) EXPORT & IMPORT PROHIBITIONS Secl 1 of the Customs Act 1962 gives powers to cardinal government to prohibit import or export of goods . Such a obstruction can be infinite or conditional.Absolute prohibition implys an importer is totally prohibited in importing/exporting the payoff goods. Some of the goods prohibited from time to time are narcotic drugs, explosives, live or dead animals birds, arms and ammunition, counterfeit property notes. On the other hand, conditional prohibition would mean that the prohibition would mean that the prohibition would mean that the prohibition is subject to certain conditions imposed. A conditional prohibition would attract in a grapheme where the importer is prohibited in selling/trading the imported goods but can completely use the ame as a raw material for manufacture.Some item like wool, turmeric, onion, unappeasable pepper, tea, etc are allowed to be exported only after they are graded by designated authorities. In terms of Sec. ll (2) of the Customs Act, 1962, the prohibition may among other things occupy to the chase i) Maintenance of security of India. Prevention of import Conservation of foreign exchange and safeguarding balance of compensations. Prevention of serious injury to domestic doing of goods. v) surety of national treasures. Maintenance of public order and standards of decency and morality. vii)Protection of IPR (Patent/Trademark/Copyright) viii) some(prenominal) other matter conducive to the interest of general public. Sec. 2 (33) of the act defines prohibited goods means whatsoever goods the import or export of which is subject to each prohibition under this act or any other law for time being in force but doesnt include any such goods in respect of which the conditions subject to which the goods are permitted to be imported or exported, have been complied with. Therefore, the prohibition under Customs Act applies to prohibition under any other law in India. ) quaint Monument Prevention Act prohibits/ restricts antiquities e imported or exported without licence. b) mail and ammunition cannot c) Wil dlife Act prohibits certain exports- red sandal wood (which are used in Middle East countries for making musical instruments) d) Environment Protection Act prohibits export of some items. At the time of import of goods the customs authorities will first check whether the items imported is prohibited / cut back or subject to conditional import, before allowing clearance of the goods.Similarly at the time export also the goods are given let export order only after they are checked with the university extension to restrictions/ rohibitions. If such goods are essay to be smuggled the goods are liable to seizure/ arrogation and the offender liable to penal action including arrest / prosecution under the Customs Act. The word confiscation implies appropriation consequential to seizure. The essence and concept of the confiscation is that after confiscation the property of the confiscated goods vest with the central govt.Secl 1 1 of the Act provides for confiscation of improperly importe d goods. The goods brought from a place outside India shall be liable for confiscation. Sec. 111 (d) says any goods hich are imported or act to be imported or are brought within the Indian Customs amniotic fluid for the purpose of being imported, contrary to any prohibition imposed by or under this act or any other law for the time being in force. Secl 13 of the Act deals with confiscation of goods attempted to be improperly exported .The export goods shall be liable for confiscation under sec 113 (d) says any goods attempted to be exported or brought within the limits of any customs area for the purpose of being exported contrary to any prohibition imposed by or under this Act or any other law for time being in force. COFEPOSA, 1974 Conservation of Foreign Exchange and prevention of smuggling Activities Act (COFEPOSA) was passed in 1974 when foreign exchange position in India was bleak and smuggling was beyond control.In view of recent liberalisation, the Act has lost its signifi cance. The Act gives wide powers to executive to detain a person on mere Suspicion of smuggling (the draconian aliment of the act can be compared with provisions of TADA, where a person can be incarnated in Jail merely for possessing a illegal implement and having acquaintances with some underworld elements, without any proof of direct involvement in terrorist activities). The acts like COFEPOSA, TADA, etc are criticized on the ground that they violate basic kind-hearted rights.Freedom of a man can be taken away under such Acts, without Judicial scrutiny and safeguards. The act has been given special protection by including the same in the 9th schedule to constitution. The validity of COFEPOSA particularly section 5A and SAFEMA smugglers and foreign Exchange Manipulators ( surrenderure of property) Act 1976, have been upheld in Attorney widely distributed of India Vs. Amaratlal PraJivandas4. A 9 member bench SC order. Thus, individual polished liberties can be curtailed for nat ional security and in national interest.Under provisions of the act, a Government police officer, not below the rank of Joint deposit in depicted object of central Government and Secretary in case of State Government, who is specifically authorized by central or state government for that purpose, is authorised to order storage area of a person (including a foreigner) with a view to prevent him from acting in any stylus prejudicial to conservation or augmentation of foreign exchange, or to prevent him from smuggling or abetting smuggling of goods, or transporting, keeping conceling or dealing in smuggling goods or harbouring persons engaged in smuggling ot goods. section. ). where an order ot detention is made by state government officer, it should be reported to central government within 10 long time. (Section. 3 (2)). When detention is ordered by central government, central govt. is appropriate government. When detention is ordered by state government, that govt. is appropri ate government. The significance of this definition is that the Appropriate government has to make a reference to advisory board formed for the purpose of COFEPOSA and take action as per decision of advisory board.Appropriate government also has powers to revoke a detention, retail store a person temporarily, etc SAFEMA, 1976 Another act relevant to COEPOSA is SAFEMA smugglers and Foreign Exchange Manipulators (Forfeiture of property) Act, 1976. The act applies to persons convicted under customs Act, FERA and to those detained under COFEPOSA. The purpose of the act is to forfeit the illegally acquired properties of the smugglers and foreign exchange manipulators. Property can be forfeit merely on the ground that he is detained under COFEPOSA.However, in case of customs and FERA, property can be forfeited only if a person is convicted under these Acts. An appellate tribunal has also been formed for this purpose. COFEPOSA is fear Act similar to TADA. It permits detention of a person even without a charge. Since the powers are extraordinary, generally courts are strict about the conditions prescribed in respect of detention. FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992. The FTDR Act is designed to develop and regulate foreign trade by facilitating imports in to India, and augmenting exports from India, and for matters connected therewith.The salient features of the Act are as follows 0 It has empowered the Central Government to make provisions for development and regulation of foreign trade by acilitating imports into, and augmenting exports from India and for all matters connected therewith or incidental thereto. 0 The Central Government can prohibit, restrict and regulate exports and imports, in all or qualify cases as well as subject them to exemptions. 0 It authorizes the Central Government to formulate and announce an Export and Import (EXIM) Policy and also amend the same from time to time, by notification in the Official Gazette. It provides for the assigning of a Director General of Foreign Trade by the Central Government for the purpose of the Act. He shall advise Central Government in formulating export and import policy and implementing the policy. 01Jnder the Act, every importer and exporter must obtain a Importer Exporter Code Number (EC) from Director General of Foreign Trade or from the officer so authorised. The Director General or any other officer so authorised can suspend or cancel a licence issued for export or import of goods in accordance with the Act.But he does it after giving the licence holder a reasonable luck of being heard. PENALTY Export or import in impingement of provisions of the act, rules or policy is an offence. Penalty up to five multiplication the grade of goods can be imposed. The contravening goods and raptus carrying the goods are liable to confiscation. The goods and conveyances confiscated can be released by paying redemption charges equal to market value of such goods or conveyance. Conveyance will not be confiscated if it is owner proves that the conveyance was used without his knowledge or ne took reasonable precautions against its misuse. Penalty and confiscation can be ordered by Adjudicatory authority. APPEAL raise against the order of DGFT for refusing of suspending or cancelling code umber or licence or imposing penalty can be filed within 45 days with prescribed authority. Appeal can be filed only on payment of penalty imposed, unless appellate authority dispense with such pre deposit (Section. 5 of FTDR). Central Government can call and examine any records and pass revision orders in some cases (section. 16 of the act). SETTLEMENT A person can opt for settlement by admitting contravention in the following Contravention was without willful mistake or without any circumstances. a. collusion, fraud or without intention to cause loss of foreign exchange. b. Person mporting has not misutilised the imported goods, but condition of Actual user or Export obli gation have not been satisfied.