Indian Fiscal Budget 1997-98: EXIM POLICY 1997-2002
GENERAL PROVISIONS REGARDING EXPORTS AND IMPORTS
Exports and Imports free unless regulated
4.1 Exports and Imports shall be free, except to the extent they are regulated by the provisions of this Policy or any other law for the time being in force. The itemwise export and import policy shall be, as stated in columns 3 to 5 of the book, titled "ITC (HS) Classifications of Export and Import Items" published and notified by the Director General of Foreign Trade and as amended from time to time.
4.2 The Central Government may, in public interest, regulate the import or export of goods by means of a Negative List of Imports or a Negative List of Exports, as the case may be.
4.3The Negative Lists may consist of goods, the import or export of which is prohibited, restricted through licensing or otherwise, or canalised. The Negative List of Imports and the Negative List of Exports shall be as contained in this Policy .
4.4Prohibited items in the Negative List of imports shall not be imported and prohibited items in the Negative List of Exports shall not be exported.
4.5Any goods, the export or import of which is restricted through licensing, may be exported or imported only in accordance with a licence issued in this behalf.
Terms and Conditions of a licence
4.6Every licence shall be valid for the period of validity specified in the licence and shall contain such terms and conditions as may be specified by the licensing authority which may include:
(a)The quantity, description and value of the goods;
(b) Actual User condition,
(d)The value addition to be achieved, and
(e) The minimum export price.
Licence not a right
4.7 No person may claim a licence as a right and the Director General of Foreign Trade or the licensing authority shall have the power to refuse to grant or renew a licence in accordance with the provisions of the Act and the Rules made thereunder.
4.8Any goods, the import or export of which is canalised, may be imported or exported by the canalising agency specified in the Negative Lists. The Director General of Foreign Trade may, however, grant a licence to any other person to import or export any canalised goods.
Importer- Exporter Code Number
4.9No export or import shall be made by any person without an Importer-Exporter Code (IEC) number unless specifically exempted. An Importer-Exporter Code (IEC) number, , shall be granted, on application by the competent authority in accordance with the procedure specified in the Handbook (Vol.1)
Registration -cum-Membership Certificate
4.10 Any person, applying for (i) a licence to import/export or (ii) any other benefit or concession under this Policy shall be required to furnish Registration-cum-Membership Certificate (RCMC) granted by the competent authority in accordance with the procedure specified in the Handbook (Vol.1) unless specifically exempted under the Policy.
4.11The Director General of Foreign Trade may, in any case or class of cases, specify the procedure to be followed by an exporter or importer or by any licensing, competent or other authority for the purpose of implementing the provisions of the Act, the Rules and Orders made thereunder and this Policy. Such procedures shall be included in the Handbook (Vol.1), Handbook(Vol.2) and ITC(HS) Classifications of Export and Import items and published by means of a Public Notice. Such procedures may, in like manner, be amended from time to time.
Compliance with Laws
4.12Every exporter or importer shall comply with the provisions of the Foreign Trade (Development and Regulation) Act, 1992, the Rules and Orders made thereunder, the provisions of this Policy and the terms and conditions of any licence granted to him, as well as provisions of any other law for the time being in force.
Interpretation of Policy
4.13If any question or doubt arises in respect of the interpretation of any provision contained in this Policy, the said question or doubt shall be referred to the Director General of Foreign Trade whose decision thereon shall be final and binding. If any question or doubt arises whether a licence has been issued in accordance with this Policy or if any question or doubt arises touching upon the scope and content of a licence, the same shall be referred to the Director General of Foreign Trade for a decision.
Exemption from Policy/ Procedure
4.14Any request for relaxation of the provisions of this Policy or of any procedure, on the ground that there is genuine hardship to the applicant or that a strict application of the Policy or the procedure is likely to have an adverse impact on trade, may be made to the Director General of Foreign Trade for such relief as may be necessary. The Director General of Foreign Trade may pass such orders or grant such relaxation or relief as he may deem fit and proper. The Director General of Foreign Trade may, in public interest, exempt any person or class or category of persons from any provision of this Policy or any procedure and may, while granting such exemption, impose such conditions as he may deem fit.
Private Bonded Warehouses
4.15Private bonded warehouses may be set up in the Domestic Tariff Area. Any person may import goods which are freely importable or which may be imported against Special Import Licences (SIL) and warehouse them in such private bonded warehouses. Such goods may be cleared for home consumption in accordance with the provisions of this Policy and against Special Import Licence, wherever required. Customs duty as applicable shall be paid at the time of clearance of such goods.If such goods are not cleared for home consumption within a period of one year or such extended period as the custom authorities may permit, the importer of such goods shall export the goods in accordance with the provisions of the Policy and against a licence, wherever required.
Trade with Neighbouring Countries
4.16The Director General of Foreign Trade may issue, from time to time, such instructions or frame such schemes as may be required to promote trade and strengthen economic ties with neighbouring countries.
Trade with Russia under Debt-Repayment Agreement
4.17 In the case of trade with Russia under the Debt Repayment Agreement, the Director General of Foreign Trade may issue, from time to time, such instructions or frame such schemes as may be required, and anything contained in this Policy, in so far as it is inconsistent with such instructions or schemes, shall not apply.
4.18Transit of goods through India from or to countries adjacent to India shall be regulated in accordance with the treaty between India and those countries.
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