U N D E R S T A N D I N G
P O L I C Y
q Foreign Trade Policy :
§ Drafted by Director General of Foreign Trade under the Ministry of Commerce. The governing Act is Foreign Trade Development Regulation Act, 1992 and Rules framed there under. § Implemented with the help of various other Departments mainly Customs, Excise and RBI. § In order to understand the co-relation, one must get familiar with the various laws and functions of various departments. § As far as implementation is concerned, the co-relation of Foreign Trade Policy with the following Acts, Laws and Regulations must be taken into account :
§ § § § § § § § Customs Act, 1962 Customs Tariff Act, 1975 Foreign Exchange Management Act, 1999 Central Excise Act, 1944 Central Excise Tariff Act, 1985 Industrial Policy Resolution, 1956. Industries Development and Regulation Act, 1951 Laws of Weights and Measures
All the above Laws are primarily taken into account at the time of actual implementation of export/import activities. Physical movement of goods inward and outward is monitored mainly by Customs and Excise Field Formations which work under Department of Revenue [DoR], Ministry of Finance [MoF].
Ministry of Finance Dept. of Revenue
Customs Coverage Validity of imports and exports Assessment and valuation Export Under bond – clearance of excisable goods for export under bond Rebate of excise duty post exports where exports have been effected after payment of excise duty Monitoring factory stuffed containers in certain cases Import Monitoring CENVAT Excise Coverage
Determination of import / export duty applicable Collection of duty Inspection and supervision of cargo Examining co-relation and compliance with other laws
C o n t d…
Continued from the previous slide
Governing Acts/Laws/Manual 1. Customs Act, 1962 2. Customs Tariff Act, 1975 3. Customs Law Manual Tools : i) Notifications ii) Public Notices iii) Customs Circular iv) General Exemption Notifications
Governing Acts/Laws/Manual 1. Central Excise Act, 1944 2. Central Excise Tariff Act, 1985 3. Central Excise Law Manual Tools : i) Notifications ii) Central Excise Circulars iii) General Exemption Notifications
q Export or import involves movement of goods as well as receipt/remittance of foreign exchange. q Though foreign exchange regulations are relaxed, monitoring of forex operations is still being carried out by Reserve Bank of India.
Coverage Monitoring Foreign Exchange Inflow – on account of exports of goods and services Outflow – on account of imports of goods and services Governing Acts/Laws/Manual 1) Foreign Exchange Management Act 1999 2) Foreign Exchange Manual Tools: Master Circulars FEMA Notifications A.P. (DIR. Srs.) Circulars
In order to understand full implications of Foreign Trade Policy one must get oneself familiarized with all the above mentioned departments and their working
O R G A N I S A T I O N
Addl. DGFT Zonal Jt. DGFT & Addl. Export Commissioner, Delhi Jt. DGFT (Pune) Dy. DG Asst. DG FTDO Staff Zonal Jt. DGFT & Addl. Export Commissioner, Mumbai Jt. DGFT (Ahmedabad) Dy. DG Asst. DG FTDO Staff Export Commissioner Zonal Jt. DGFT & Addl. Export Commissioner, Chennai Jt. DGFT (Vadodara) Dy. DG Asst. DG FTDO Staff Zonal Jt. DGFT & Addl. Export Commissioner, Kolkata Jt. DGFT (Rajkot) Dy. DG Asst. DG FTDO Staff
q FOREIGN TRADE (DEVELOPMENT & REGULATION) ACT, 1992
§ Foreign Trade Policy is formulated under Foreign Trade (Development & Regulation) Act, 1992. This Act is to provide for the development and regulation of foreign trade by • facilitating imports • augmenting exports and • for matters connected therewith or incidental thereto.
§ The Central Government can appoint any person to be the Director General of Foreign Trade [DGFT] DGFT shall advise the Central Government in the formulation of the export and import...
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