Regulations for international trade

Laws governing Indias Export Import trade

Foreign Trade Development & Regulation Act,1992 Foreign Exchange Regulations Act , 1973(FERA) Pre-shipment Inspection & quality control Act,1963 Customs Act International Commercial Practices

Foreign Trade Development & Regulations Act,1992

In this Act, the office of Director General of Foreign Trade brings out the export import policy & lays down the procedures.
Whether export of a product is banned. Whether the export of the product is subject to quota restrictions & licensing arrangements. Whether export of the product is canalized through a Govt. undertaking Whether there is any floor price regulation regarding that product

Provisions of the Act

Development & regulations Prohibition & restriction Export Import policy Director General of Foreign Trade Importer exporter trade number Search, inspection & seizure Penalty for contravention

Foreign Exchange Regulation Act,1973

Exchange control means regulating the demand for & supply of foreign exchange with the objective of making rational use of available foreign exchange for various purposes according to a scheme of priorities laid down by the policy. It imposed on payment as well as receipt.

Provision of Act
Application of FEMA: Capital account transactions Current account transactions Act provides that: For all cash exports, the foreign exchange proceeds from exports must be brought back to India within 180 days.

Cont..
Residents going abroad for business purposes or for participating in conferences will not need RBI permission to avail foreign exchange up to US $25,000 per trip

Pre-shipment inspection & Quality control

In order to promote export of quality goods as per the international standards ,the Govt. of India has introduced compulsory quality control & pre-shipment inspection for 90% of the items of export under the act. Eg:food & agriculture product, chemicals,textiles,jute,engineering goods

The Act empowers the Govt. to

Notify commodities Specify the type of quality control & inspection Establish standards

Customs Act,1962
The customs department is vested with the task of carrying out physical as well as documentary check on all the goods crossing the Indian customs frontier. All export consignments will be checked by the customs authorities at port.

International Commercial Practices

Import export contracts are also subject to the provision of certain international commercial practices, which may have a bearing on export import contracts. Uniform Customs & Practice for documentary Credits,1993 INCOTERMS,2000