International Trade

Frame Work of India

• .
 Business Regulatory Laws
1-Industrial (Development & Regulation) Act,1951
-New Industrial Policy,1991:Licencing;Small Scale
Industries; Foreign Investment policy 1991,Foreign Technology
Policy 1991
2-Central Excise Act 1944 & notifications
3- Customs Act 1962 & Customs Tariff Act 1975 - Rules and
Regulations
4- Foreign Trade Policy:
-Foreign
trade (development & regulation) act,1992 & Rules
-EXIM Policy 2002-2007, replaced by Policy 2004-09
5-Foreign exchange management act,1999 (FEMA)-Rules and
Regulations
6- Labour Laws- Child labour and 15 other laws
Trade facilitation agencies
1-Governmet Regulatory Bodies:
-Central Excise authorities
-Customs authorities
-Port trusts
-Reserve Bank of India
2- Commercial Organizations
-Transport : Rail, road, Air, shipping
-Insurance and ECGC
-Banks & financial Institutions
-Chambers of Commerce
-Export Promotions Councils/ Commodity
Boards
-Inspection & certification agencies
-Logistic support providers
 Government Registrations and
Licenses
• IEC number from regional licensing authority
• Registration cum Membership certificate
(RCMC) from Export promotional
council/Commodity Boards
• BIN-PAN based Common Business Identifier
• Registration under shop and establishment act
• Registration under factories act
• Sales Tax/Vat registration
• Service Tax registration
• Affiliated Trade regulatory body
 General Provisions Regarding
Imports and Exports
• Exports and Imports are free unless
regulated –Item wise policy specified in ITC (HS)
• Exports and Imports must comply with
laws rules and regulations- details specified in
Hand Book Vol-I & II of ITC(HS)
• Interpretation of Policies- Decision of Director
General of Foreign Trade (DGFT) is final and binding
• Exemption from Policy- DGFT has power to grant
exemptions in public interest
 …General Provisions Regarding
Imports and Exports
• Restricted Goods as per ITC(HS) can by
imported by obtaining license/permission
• State Trading Corporations- STC, MMTC- refer
ITC(HS) for list of items
• Trade with neighboring Countries- DGFT
empowered to issue new policies/rules
• Trade with Russia under debt repayment
agreement- DGFT authorized to make special provisions
 …General Provisions Regarding
Imports and Exports
• Actual User Condition for- Capital Goods, Raw
materials, components, consumables, spares etc; others need
license
• Second Hand Goods-All second hand goods except
capital goods are restricted
• Import of Samples- Generally allowed subject
• Import of Gifts- allowed for goods freely imported
• Passenger Baggage - Baggage rules apply
• Re-import of Capital goods repaired
abroad – allowed with out license
 …General Provisions Regarding
Imports and Exports
• Import of Capital goods used in projects
abroad- allowed provided used for one year
• Sale of Goods on High Seas- allowed
• Import under lease Financing- allowed
• Private/ Public Bonded ware house for
import/Export
 Reading References
• Customs Tariff on India
• Export Manual and Documentation-
Nabi
• Manual on Import Documentation-
Commercial law Publication