Laws Governing Exports from India: Best Corporate Lawyer Advice
In our country, the law governing export and import is “Foreign Trade (Development and Regulation Act), 1992 (FTDR Act) which has replaced the Imports and Exports (Control) Act, 1947” gives the Indian government the authority to establish export policies and to make orders that forbid or somehow controlling the export of products. Exports and imports are to be “free” unless they are subject to “prohibition,” “limitation,” or “preferential selling through “State Trading Enterprises (STEs)” as specified in the Indian Trade Classification (Harmonized System) (ITC (HS)) of Exports and Imports, according to the Foreign Trade Policy of India 2015-2020 (FTP)”. The import and export regulations are shown next to each item in the ITC (HS). Export Policy is governed by Schedule 2 of the ITC (HS). India made a significant improvement to the Ease of Doing Business by decreasing the number of obligatory paperwork needed for each import and export of commodities to three. In July 2014, the Department of Commerce established an Inter-Ministerial Committee with the DGFT as its Chairman to research and provide recommendations on how to lessen the amount of obligatory paperwork needed for export and import.
The customs officers chosen in accordance with the requirements of the Customs Act 1962 are responsible for levying and supervising of import duties, Consolidated Products and Service Charges, and penalty. The Customs Act of 1962 and the rules made pursuant to section also control the paperwork necessary criteria for the import and export of products, and these qualifications are checked by customs officials at the scheduled time of export. It must be acknowledged that under the terms of the FTDR Act read in conjunction with the Foreign Trade Policy, the DGFT is responsible for regulating requirements related to procure licences, limitations on importation and exportation, certification of products that are limited or not allowed for import or export, etc. As a result, the DGFT regulates controls relating to licence and the accompanying paperwork, whereas Customs regulates controls relating to documentation connected to import or export.
The Foreign Exchange Management Act, 1999, under which the Foreign Exchange Management Regulations, 2000 were drafted, governs foreign currency transactions that are concerned in export or import commerce. These Regulations have been made public by Notification No. FEMA 23/2000-RB, and any subsequent amendments. The RBI also regulates other aspects of credit, including the facilitation of exports through the establishment of branch offices, joint ventures, wholly-owned subsidiaries, exports to warehouses, merchanting trade, and cross-border internet transactions.
Businesses who want to establish a consulting firm or begin importing or exporting from India need to be aware of the many steps and key players, as well as the legal requirements and paperwork. The “Foreign Trade (Development and Regulation) Act, 1992”, which gives the central government the authority to create laws for the growth and the upliftment of international commerce, governs imports and exports in India. The Foreign Trade Policy, 2015–20, outlines the current export and import regulations that are in effect in India.
Authored By: Adv. Anant Sharma & Raghavendran Keerthana
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