14 Intl Trade Frame Work Of India

International Trade Frame Work of India

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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

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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 DocumentationNabi • Manual on Import DocumentationCommercial law Publication