General Provisions for import and export in India
The Directorate General of Foreign Trade and Investment (DGFT) and Ministry of Commerce and Industry implemented the foreign trade policy , which contains the general provisions for import and export. They are:
1. Exports and imports are free unless regulated
Export and Import of goods shall be free, except in some cases where they are regulated by the provisions of this specific Policy or by any other law for the time being in force. The goods wise export and import policy shall be laid out in ITC(HS) published and notified by the Director-General of Foreign Trade, as amended from time to time.
2. Laws are to be complied
Every exporting or importing entity shall comply with the provisions of the Foreign Trade (Development and Regulation) Act, 1992, principles made thereunder, the provisions of this Policy, and the terms and conditions of any license or certificate or permission granted to them, as well as provisions of any other law for the time being in action. All imported goods would even be subject to local Laws, Regulations, technical specifications, environmental and safety norms as applicable to domestically produced goods. No importing or exporting activity of rough diamonds shall be permitted unless the shipment parcel is followed by Kimberley Process (KP) Certificate required under the procedure specified by the Gem & Jewellery Export Promotion Council (GJEPC).
3. Procedure
The DGFT specifies the procedure that has to be followed by the exporter and importer or by any other authority to follow the procedures which are laid down in Acts, handbooks, etc. Once the procedure is being established it’s to be published on public notice, and these procedures have to vary as well.
4. Exemption
If due to any legitimate reason, relaxation is needed in any procedure, the request can be made to the DGFT, who can pass orders on the same. The DGFT can provide leniency in certain procedures for public interest and also, such request may be considered only after consulting Advance Licensing Committee (ALC) if the request is with respect to a provision excluding any provision relating to Gem & Jewellery sector.
5. Restriction principles
The DGFT through their notification can enforce any decision that is necessary for
6. Goods which are restricted
Any goods which are restricted can only be imported and exported if there is a license for the same and a public notice has to be issued as well on this behalf.
7. Terms and conditions
There are certain regulations which have to prevalent while obtaining a license or a certificate, they include:
8. Penalty
If a license or certificate or permission holder violates any condition of the license or certificate or permission or fails to fulfil the export obligation, he shall be liable for action in accordance with the Act, regulations made under which the Policy and any other law for the time being in action.
9. Permission to get license etc.-
Nobody could claim a license or certificate or permission as a right and the DGFT or the licensing authority shall have the power to refuse to grant or renew a license or certificate or permission in accordance with the provisions of the regulations made thereunder.
10. Import on export basis
New or second-hand capital goods, equipment, components, parts and accessories, containers meant for packing of goods for exports, jigs, fixtures, dies and mould, may be imported for export without a licence/certificate/permission on the execution of Legal Undertaking/Bank Guarantee with the Customs Authorities provided that the item is freely exportable without any conditionality/requirement of license or permission as may be required.
