Foreign Trade (Development

&
Regulation Act) 1992

Submitted by:
Ashima Mahajan
 Defined As
An Act to provide for the development
and regulation of foreign trade by
facilitating imports into, and augmenting
GLOBAL TRADE exports from, India and for matters
connected therewith or incidental thereto
PRESENTATION
LOREM IPSUM DOLOR SIT AMET

No. of Chapters No. of Sections

06 20

Portfolio
Presentation
HISTORY
1947
Import and Export
(control) Act
The Act was enacted “to
continue for a limited period,
the powers to prohibit and/or
control imports and exports”.
The initial life of the Act was
three years, but it was extended
from time to time till 1971.
Thereafter, the Act ceased to be
a temporary measure and
became a permanent statute.
1992
Foreign Trade (Development
& Regulation) Act
One of the basic aims of the
reforms process was
progressively integrate the Indian
economy with the rest of the
world. The process called for
progressive liberalization of
controls and elimination of
discretionary licensing
imports and exports.
2010
Foreign Trade (Development
& Regulation) Amendment Bill
The Bill seeks to bring in 'technology'
to and 'services' within its purview. It
also aims to impose Quantitative
Restrictions (QRs) and bring in
provisions for more stringent control
for trade of dual-use goods and
technologies. 
for
 India’s Foreign Trade Over The Years
Post World War 1 1950-1960 1992
There was a significant
India's exports
boost in the exports of
increased because Foreign Trade
demand for raw raw manufactures
Development &
such as iron ore. The
materials was Regulation Act
external factors such
increased in all over
as the closure of Suez
world and there were
Canal created tension
elimination of war
on the domestic
time restrictions
financial system.

1900-1914 Great 1991

Depression New Economic
Development in
India's foreign 1930’s Reforms
trade. The augment Trade was rigorously Indian government
in the production of affected because of mainly concentrated
crops as oilseeds, decrement in on reforms on
cotton, jute and tea commodity prices, Liberalization,
was mainly due to a decline in consumer's openness and export
thriving export purchasing power and sponsorship activity.
trade. unfair trade policies
adopted by the colonial
government.
 India's Foreign Trade
Exports (in US$ Mil) Imports (in US$ Mil)

700000

600000

500000

400000

300000

200000

100000

0
1985 1990 1995 2000 2005 2010 2015 2020
 Chapter 1
Preliminary

Section 1 – Short Title & Commencement

This Act may be called the Foreign Trade

2 1 Section 2 - Definition

Like Director General, Import & Export,

Specified goods or services or technology
(Development and Regulation) Act, 1992.
 Chapter II
Power of central government to make order and announce

Section 4 - Continuance of existing

orders
All Orders made under the Imports and Exports (Control)
Act, 1947 (18 of 1947), are not inconsistent with the
4 3 Section 3 - Powers to make provisions
relating to imports and exports
• Provisions for the development and regulation of foreign trade.
• Provision for prohibiting, restricting or otherwise regulating
provisions of this Act, shall be deemed to have been made • No permit or license shall be necessary Without prejudice
under this Act

Section 6 - Appointment of Director

General and his functions
The Director General shall advise the Central Government
in the formulation of the foreign trade policy and shall be
6 5 Section 5 - Foreign Trade Policy
• Time to time formulate, amend and announce
• Providing exceptions to SEZ

responsible for carrying out that policy.

 CHAPTER III
Importer-exporter code (IEC) number and license

7
Section 8 - Suspension and cancellation of Section 7 - Importer-exporter Code Number

8
Importer-exporter Code Number
If IEC is suspended for a person, then only by
obtaining a special License can they trade again
• All the goods traded must have an IEC number
(10 digit) granted by Director General
• Service don't require IEC unless they are
specified service which are in the amendment
2010
Section 9 - Issue, suspension and cancellation

9
of license

5 • The central government may levy fees on the

license applications
• The license is valid for a particular period and
for particular goods
• There is no suspension without giving the
holder a chance of being heard
 CHAPTER IIIA
Quantitative Restrictions

Power of Central Government to impose quantitative restrictions

Section 9A
• The central government can impose restrictions if the imports are deemed
to cause injury to the domestic market.
• Cannot restrict goods originated from the developing countries unless the
share of import of those goods exceeds 3% from that country
• If the goods originate from more then one country, then the aggregate of
the imports from all such countries taken together does not exceed 9% of
the total imports of such goods into India.
• The restriction unless revoked earlier is imposed for 4 years and can be
extended to 10 years at maximum.
 CHAPTER IV
Search, Seizure, Penalty and Confiscation

Power relating to search and seizure

Section 10
• 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 foreign

Section 11
trade policy

• If any trade is made in contravention of this Act or if any of the

documentation submitted are forged, then he/she shall be liable to a penalty
of not less than ten thousand rupees and not more than five times the
value of the goods or services or technology
 Crediting sums realized by way of penalties in Consolidated Fund
Section 11A of India

• All sums realized by way of penalties under this Act shall be credited to the
Consolidated Fund of India.

Empowering Settlement Commission for regularization of export

Section 11B obligation default

• Settlement of customs duty and interest thereon as ordered by the

Settlement Commission as constituted under section 32 of the Central
Excise Act, 1944 (1 of 1944), shall be deemed to be a settlement under this
Act.]
Penalty or confiscation not to interfere with other punishments.
Section 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
Section 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 Gazette, authorize in this behalf.

Giving of opportunity to the owner of the 1 [goods (including the goods

Section 14 connected with services or technology)], etc.

• No order imposing a penalty or of adjudication of confiscation shall be

made unless the owner of the goods has been given a notice in writing—

(a) Informing him of the grounds of the penalty

(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
 CHAPTER IVA
Controls on export of Specified Goods, Services and Technology
Controls on export of specified goods, services and technology
Section 14A
• All terms, expressions or provisions of the Weapons of Mass Destruction
and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005
(21 of 2005) shall apply to the specified goods, services or technology with
such exceptions, modifications and adaptations as may be specified by the
Central Government by notification in the Official Gazette.

Transfer controls
Section 14B
• No goods, services or technology notified under this Chapter shall be
exported, transferred, re-transferred, brought in transit or transshipped
except in accordance with the provisions of this Act, the Weapons of Mass
Destruction and their Delivery Systems (Prohibition of Unlawful
Activities) Act, 2005 (21 of 2005) or any other relevant Act
 Catch-all controls
Section 14C
• No person shall export any material, equipment or technology knowing that
such material, equipment or technology is intended to be used in the design
or manufacture of a biological weapon, chemical weapon, nuclear weapon
or other nuclear explosive device, or in their missile delivery systems

Suspension or cancellation of a license

Section 14D
• The Director General or an officer authorized by him may, by order,
suspend or cancel a license to import or export of specified goods or
services or technology without giving the holder a reasonable opportunity
of being heard but such person shall be given a reasonable opportunity of
being heard within six months of such order and thereupon the Director
General or the officer so authorized may, if necessary, by order in writing,
confirm, modify or revoke such order

Offences and penalties

Section 14E
• In case of a contravention relating to specified goods, services or
technologies, the penalty shall be in accordance with the provisions of the
Weapons of Mass Destruction and their Delivery Systems (Prohibition of
Unlawful Activities) Act, 2005 (21 of 2005).
 CHAPTER V
Appeal And Review
Appeal
Section 15
• Any person aggrieved by any decision or order made by the Adjudicating
Authority under this Act may prefer an 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 penalty amount is deposited or the Appellate Authority is
of opinion that the deposit to be made will cause undue hardship to the
appellant
• The order made in appeal by the Appellate Authority shall be final
Review
Section 16
The Central Government can examine the records of any proceeding and can
make decisions 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, 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 defense.
 Powers of Adjudicating and other Authorities
Section 17
• Every authority hearing any appeal under this Act shall have all the powers
of a civil court under the Code of Civil Procedure, 1908 while trying a suit

• Clerical or arithmetical mistakes in any decision from any accidental slip or

omission may at any time be corrected by the authority:

• No such correction shall be made except after giving to that person a

reasonable opportunity of making a representation in the matter

• 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
Section 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.

Application of other laws not barred

Section 18A
The provisions of this Act shall be in addition to, and not in derogation of, the
provisions of any other law for the time being in force.
 Repeal and savings
Section 20
• 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,—
(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
Thank You