The ministry of commerce and industry and DGFT (directorate general of foreign trade and investment) implemented the foreign trade policy of the year 2015-2020, which includes the general provisions for import and export in chapter two as given below;
But before going into that, it becomes pertinent to carry out IEC code online application prior to initiating import-export business in India. Know that the exports and imports are cost-free unless regulated – imports and exports are free, until they are regulated by policy’s provisions or any other law temporarily. The item-wise import and export policy should be, as mentioned in ITC (HS), notified and published by the DGFT (director general of foreign trade), as amended from time to time.
Laws are to be complied – every importer or exporter should abide by the provisions of the foreign trade (development and regulation) act, 1992, the rules and orders made as said above, the policy’s provisions, and the T&Cs of any certificate/license/permission allocated to him/her, as well as provisions of any other law temporarily. All the imported goods have to come under the domestic laws, orders, rules, technical specifications, regulations, environmental and safety norms of domestically manufactured goods. No export or import of rough diamonds should be allowed unless the shipment parcel is accompanied by KP (Kimberley Process) certificate needed under the process mentioned by the GJEPC (Gem & Jewellery export promotion council).
Process – the DGFT (directorate general of foreign trade) outlines the process that exporter and importers are obliged to follow. Any other authority will have to follow the procedure given in the acts, handbooks, and so forth. Once the process has been formulated, it should be published on public notice, and these procedures can be subjected to change as well in the foreseeable future.
Exemption – because of any reasonable reasons, relaxation is required in any procedure, the request has to be made to the DGFT, who will pass the orders on the same. The DGFT (directorate general of foreign trade) can relax specific procedures for public interests as well such as request might be taken only after discussing with ALC (advancing licensing committee) if the request is in line with the provision of chapter 4 (exempting any provision concerning Gem & Jewellery sector) of procedure or policy.
Limitation on principles – the DGFT on notification has the power to enforce any decision that is requisite for a) safeguard public morals b) safeguard human, animal, or plant life or health c) safeguard trademarks, patents, and copyrights and prevention of misleading practices d) prevention of the use of prison labour e) safeguarding national treasures of artistic, archaeological or historical value f) preservation of exhaustible natural resources g) safeguarding trade of fissionable material or material from which they are derived h) safeguarding traffic in ammunition, arms, and implements of war.
Goods that are regulated – any goods that are regulated can only be exported or imported if there is a license for the same, and a public notice should be issued as well on behalf of this.
T&C (terms and conditions) – some specific terms and conditions have to present while acquiring a license or a certificate, such as a) the description, quantity, and value of goods b) actual user condition c) export obligation d) the value addition to be attained e) the minimum export price.
Penalty – If a certificate, license, permission holder breaches any condition of the certificate, license, permission or fails to fulfil the export obligation, he/she will be liable for action as per the act, the rules or orders made thereunder, the policy and any other law temporarily.
Permission to obtain a license and so forth – no individual can claim certificate, license, permission as an entitlement and DGFT (director general of foreign trade) or the licensing authority should have the power to reject to allocate or renew a certificate, license, permission as per the provisions of the act, and the rules made thereunder.
Import on export base – new or used capital goods, components, equipment, accessories, parts, containers meant for packing of goods for exports, fixtures, jigs, dies and mould, might be imported for export without a certificate, license, permission on the implementation of legal undertaking or bank guarantee with the customs authorities offered that the item is freely exportable without any prior requirement or conditionality of permission or license as might be needed under the ITC (HS) schedule II.