APPENDIX - 49
MINISTRY OF COMMERCE
(Directorate General of Foreign Trade)
NOTIFICATION
New Delhi, the 30th December, 1993
G.S.R. 791(E)- In exercise of the powers conferred by section 19 of
the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992),
the Central Government hereby makes the following rules, namely. -
- Short title and commencement,-
- These rules may be called the Foreign Trade (Regulation) Rules, 1993.
- They shall come into force on the date of their publication
in the Official Gazette.
- Definitions-
In these rules unless the context otherwise requires , -
- "Act" means the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992);
- "charitable purpose" includes relief of the poor, education,
medical relief, and the advancement of any other object of
general public utility;
- "importer" or "exporter" means a person who imports or
exports goods and holds a valid Importer-exporter Code Number
granted under section 7;
- "licensing authority" means an authority authorised by the
Director General under sub-section (2) of section 9 to grant
or renew a licence under these rules;
- "Policy" means the export and import Policy formulated and
announced by the Central Government under section 5;
- "schedule" means a Schedule appended to these rules;
- "section" means a section of the Act;
- "special licence" means a licence granted under sub-section
(2) of section 8;
- "value" has the meaning assigned to it in clause (41) of
section 2 of the Customs Act, 1962 (52 of 1962);
- words and expression used in these rules and not defined but
defined in the Act shall have the meanings respectively
assigned to them in the Act.
- Grant of special licence-
- Where the Importer-exporter Code Number granted to any person
has been suspended or cancelled under sub-section (1) of
section 8, the Director General may, having regard to the
following factors, grant to him a special licence, namely:-
- that the denial of a special licence is likely to affect
the foreign trade of India adversely; or
- that the suspension or cancellation of the Importer-
exporter Code Number is likely to lead to
non-fulfillment of any obligation by India under any
international agreement;
- The special licence granted to any person under sub-rule (1)
shall be non-transferable.
- Application for grant of licence-
A person may make an application for the grant of a licence to
import or export goods in accordance with the provisions of the
Policy or an Order made under section 3.
- Fee-
- Every application for a licence to import shall be
accompanied by the fee specified in the Schedule.
- The mode of deposit of fee shall be as specified in the
Schedule.
- No fee shall be payable in respect of any application made
by:
- the Central Government, a State Government or any
department or any office of the Government;
- any local authority for the bona-fide import of goods
required by it for official use;
- any institution set up for educational, charitable or
missionary purpose, for the import of goods required for
its use;
- an applicant for the import of any goods (other than a
vehicle) if the import of the goods is for his personal
use which is not connected with trade or manufacture.
- The fee once received will not be refunded except in the
following circumstances, namely:-
- where the fee has been deposited in excess of the
specified scale of fee; or
- where the fee has been deposited but no application has
been made; or
- where the fee has been deposited in error but the
applicant is exempt from payment of fee.
- Conditions of licence-
- It shall be deemed to be a condition of every licence for
export that:-
- no person shall transfer or acquire by transfer any licence
issued by the licensing authority except in accordance with
the provisions of the Policy;
- the goods for the export of which the licence is granted
shall be the property of the licensee at the time of the
export.
- The licensing authority may issue a licence for import
subject to one or more of the following conditions, namely:-
- that the goods covered by the licence shall not be
disposed of except in accordance with the provisions of
the Policy or in the manner specified by the licensing
authority in the licence;
- that the applicant for a licence shall execute a bond
for complying with the terms and conditions of the
licence.
- It shall be deemed to be a condition of every licence for
import that :-
- no person shall transfer or acquire by transfer any
licence issued by the licensing authority except in
accordance with the provisions of the Policy;
- the goods for the import of which a licence is granted
shall be the property of the licensee at the time of
import and upto the time of clearance through customs;
- the goods for the import of which a licence is granted
shall be new goods, unless otherwise stated in the
licence;
- the goods covered by the licence for import shall not be
exported without the written permission of the Director
General.
- Any person importing goods from the United States of America
in accordance with the terms of the Indo-US Memorandum of
Understanding on Technology Transfer shall also comply with
all the conditions and assurances specified in the Import
Certificate issued in terms of such Memorandum, and such
other assurances given by the person importing those goods to
the Government of the United States of America through the
Government of India.
- Refusal of licence-
- The Director General or the licensing authority may for
reasons to be recorded in writing, refuse to grant or renew a
licence
- the applicant has contravened any law relating to
customs or foreign exchange;
- the application for the licence does not substantially
conform to any provision of these rules;
- the application or any document used in support thereof
contains any false or fraudulent or misleading
statement;
- it has been decided by the Central Government to
canalise the export or import of goods and distribution
thereof, as the case may be, through special or
specialised agencies;
- any action against the applicant is for the time being
pending under the Act or rules and Orders made
thereunder;
- the applicant is or was a managing partner in a
partnership firm, or is or was a Director of a private
limited company, having controlling interest against
which any action is for the time being pending under the
Act or rules and Orders made thereunder;
- the applicant fails to pay any penalty imposed on him
under the Act;
- the applicant has tampered with a licence;
- the applicant or any agent or employee of the applicant
with his consent has been a party to any corrupt or
fraudulent practice for the purposes of obtaining any
other licence;
- the applicant is not eligible for a licence in
accordance with any provision of the Policy;
- the applicant fails to produce any document called for
by the Director General or the licensing authority;
- in the case of a licence for import, no foreign exchange
is available for the purpose;
- the application has been signed by a person other than a
person duly authorised by the applicant under the
provisions of the Policy;
- the applicant has attempted to obtain or has obtained
cash compensatory support, duty drawback, cash
assistance benefits allowed to Registered Exporters or
any other similar benefits from the Central Government
or any agency authorised by the Central Government in
relation to exports made by him on the basis of any
false, fraudulent or misleading statement or any
document which is false or fabricated or tampered with.
- The refusal of a licence under sub-rule(1) shall be without
prejudice to any other action that may be taken against an
applicant by the licensing authority under the Act.
- Amendment of licence
The licensing authority may of its own motion or on an application
by the licensee, amend any licence in such manner as may be
necessary or to rectify any error or omission in the licence.
- Suspension of a licence
- The Director General or the licensing authority may by order
in writing, suspend the operation of a licence granted to -
- any person, if an order of detention has been made
against such person under the provisions of the
Conservation of Foreign Exchange and Prevention of
Smuggling Activities Act, 1974 (52 or 1974); or
- a partnership firm or a private limited company, if the
person referred to in clause (a) is a partner or a whole
time director or managing director, as the case may be,
of such firm or company; Provided that the order of
suspension shall cease to have effect in respect of the
aforesaid person or, as the case may be, the partnership
firm or company, when the order of detention made
against such
- being an order of detention to which the provisions of
section 9 of the Conservation of Foreign Exchange and
Prevention of Smuggling Activities Act, 1974 (52 of
1974) do not apply, has been revoked on the report of
Advisory Board under section 8 of that Act or before
receipt of the report of the Advisory Board or before
making a reference to the Advisory Board; or
- being an order of detention to which the provisions of
section 9 of the Conservation of Foreign Exchange and
Prevention of Smuggling Activities Act, 1974 (52 of
1974) apply, has been revoked on the report of the
Advisory Board under section 8 read with sub-section (2)
of section 9 of that Act or before receipt of such
report;
- has been set aside by a court of competent jurisdiction.
- The Director General or the licensing authority may by an
order in writing suspend the operation of any licence granted
under these rules, where proceedings for cancellation of such
licence has been initiated under Rule 10.
- Cancellation of a licence-
The Director General or the licensing authority may by an order in
writing cancel any licence granted under these rules
- the licence has been obtained by fraud, suppression of facts
or misrepresentation; or
- the licensee has committed a breach of any of the conditions
of the licence; or
- the licensee has tampered with the licence in any manner; or
- the licensee has contravened any law relating to customs or
foreign exchange or the rules and regulations relating
thereto.
- Declaration as to value and quality of imported goods-
On the importation into, or exportation out of, any customs ports
of any goods, whether liable to duty or not, the owner of such
goods shall in the Bill of Entry or the Shipping Bill or any
other documents prescribed under the Customs Act 1962, state the
value, quality and description of such goods to the best of his
knowledge and belief and in case of exportation of goods, certify
that the quality and specification of the goods as stated in
those documents, are in accordance with the terms of the export
contract entered into with the buyer or consignee in pursuance of
which the goods are being exported and shall subscribe a
declaration of the truth of such statement at the foot of such
Bill of Entry or Shipping Bill or any other documents.
- Declaration as to Importer-exporter Code Number
On the importation into or exportation out of any Customs port of
any goods the importer or exporter shall in the Bill of Entry of
Shipping Bill or, as the case may be, in any other documents
prescribed by rules made under the Act or the Customs Act, 1962
(52 of 1962), state the Importer-exporter Code Number allotted to
him by the competent authority.
- Utilisation of imported goods
- No person shall use any imported goods allotted to him by the
State Trading Corporation of India or any other agency
recognised by the Central Government in a manner and for the
purpose, otherwise than as declared by him in his application
for such allotment or in any document submitted by him in
support of such application.
- No person shall dispose of any goods imported by him against
a licence except in accordance with the terms and conditions
of such licence.
- Prohibition regarding making, signing of any declaration,
statement or
- No person shall make, sign or use or cause to be made signed
or used any declaration, statement or document for the
purposes of obtaining a licence or importing any goods
knowing or having reason to believe that such declaration,
statement or document is false in any material particular.
- No person shall employ any corrupt or fraudulent practice for
the purposes of obtaining any licence or importing or
exporting any goods.
- Power to enter premises and inspect, search and seize goods,
documents, things and
- Any person authorised by the Central Government under
sub-section (1) of section 10 (hereinafter called the
authorised person) may, at any reasonable time enter any
premises in which-
- any imported goods or materials which are liable to
confiscation under the provision of the Act; or
- any books of accounts or documents or things which, in
his opinion, will be useful for, or relevant to any
proceedings under the Act, are suspected to have been
kept or concealed and may inspect such goods, materials,
books or accounts, documents or things and may take such
notes or extracts therefrom as he may think fit.
- If the authorised person has reasons to believe that-
- any imported goods or materials liable to confiscation
under the Act; or
- any books of accounts or documents or things which, in
his opinion, will be useful for, or relevant to, any
proceedings under the Act,
are secreted in any premises he may enter into and search such
premises for such goods, materials, books of accounts, documents or
things.
- If the authorised person has reason to believe that any
imported goods or materials are liable to confiscation
under the Act, he may seize such goods or materials
together with the package, covering or receptacle, if
any, in which such goods or materials are found to have
been mixed with any other goods or materials;
Provided that where it is not practicable to seize any
such goods or materials, the authorised person may serve
on the owner of the goods or materials an order that he
shall not remove, part with or otherwise deal with the
goods or materials except with the previous permission
of the authorised person.
- Where any goods or materials are seized under clause (a)
and no notice in respect thereof is given within six
months of the seizure of the goods or materials, the
goods or materials shall be returned to the person from
whose possession they were seized.
Provided that the aforesaid period of six months may, on
sufficient cause being shown, be extended by the
Director General for a further period not exceeding six
months.
- The authorised person may seize any books of accounts or
documents or things which in his opinion, will be useful
for, or relevant to, any proceedings under the Act.
- The person from whose custody any documents are seized
under this sub-rule, shall be entitled to make copies
thereof or take extracts therefrom in the presence of
the authorised person.
- In any person legally entitled to the books of account
or other documents or things seized under this sub-rule
objects, for any reason, the retention by the authorised
person of the books of account or the documents or
things, he may move an application to the Central
Government stating therein the reasons for such
objection, request for the return of the books of
account or documents or things.
- On receipt of the application under clause (e), the
Central Government may, after giving the applicant an
opportunity of being heard, pass such order as it may
think fit.
- Where any document is produced or furnished by any
person or has been seized from the custody or control of
any person under the Act or has been received from any
place outside India in the course of the investigation
for any contravention referred to in section 11 by any
person and such document is tendered in evidence against
the person by whom it is produced or from whom it was
seized or against such person or any other person who is
jointly proceeded against, the Adjudicating Authority,
shall, notwithstanding anything to the countrary
contained in any other law for the time being in
- presume, unless the contrary is proved, that the
signature and every other part of such document
which purports to be in the handwriting of any
particular person of which the Adjudicating
Authority may reasonably assume to have been
signed by or to be in the handwriting of any
particular person, is under the person"s
handwriting, and in the case of a document
executed or attested, it was executed or attested
by the person by whom it purports to have been so
executed or attested;
- admit the document in evidence notwithstanding
that it is not duly stamped, if such document is
otherwise admissible in evidence.
- The authorised person, may, if he has reason to suspect that
any conveyance or animal is being or is about to be used for
the transportation of any imported goods or material which
are liable to confiscation under the Act, and that by such
transportation any provision of the Act has been , is being
or is about to be contravened at any time, stop such
conveyance or animal or in the case of aircraft compel it to
land, and
- rummage and search the conveyance any part thereof;
- examine and search any goods or material in the
conveyance or on the animal;
- if it becomes necessary to stop any conveyance or
animal, he may use all lawful means for stopping it and
where such means fail, the conveyance or animal may be
fired upon.
and where he is satisfied that it is necessary so to do to
prevent the contravention of any provision of the Act or of
the rules and orders made thereunder or the Policy or
condition of any licence, he may seize such conveyance or
animal.
Explanation- Any reference in this rule to a conveyance
shall, unless the context otherwise requires, be construed as
including a reference to an aircraft, vehicle or vessel.
- Settlement-
- The Adjudicating Authority may determine the amount of
settlement to be paid by the person to whom a notice has been
issued and who has opted for settlement and has admitted the
contravention specified in the notice, in the following
cases, namely:-
- where it is of the opinion that the contravention of any
provision of the Act or these rules or the Policy has
been made without mensrea or without wilful mistake or
without suppression of facts, or without any collusion,
or without fraud and forgery, or without an intent to
cause loss of foreign exchange; or
- where the person importing the goods has not met the
requirements of the actual user conditions as specified
in the Policy and has not misutilised the said imported
goods; or
- where the person importing the goods has not fulfilled
the export obligation and has not mis-utilised the said
imported goods.
- Where a person has opted for settlement under sub-rule (1)
the settlement made by the Adjudicating Authority shall be
final.
- Confiscation and redemption-
- any imported goods or materials in respect of which
- any condition of the licence, or letter of authority
under which they were imported, relating to their
utilisation or distribution ; or
- any condition, relating to their utilisation or
distribution, subject to which they were received from
or through, an agency recognised by the Central
Government; or
- any condition imposed under the Policy with regard to
the sale or disposal of such goods or materials;
has been, is being, or is attempted to be, contravened,
shall together with any package, covering or receptacle
in which such goods are found, be liable to be
confiscated by the Adjudicating Authority, and where
such goods or materials are so mixed with any other
goods or materials that they cannot be readily
separated, such other goods or materials shall also be
liable to be so confiscated:
Provided that where it is established to the
satisfaction of the Adjudicating Authority that any
goods or materials which are liable to confiscation
under this rule, had been imported for personal use, and
not for any trade or industry, such goods, or materials
shall not be ordered to be confiscated.
- The Adjudicating Authority may permit the redemption of the
confiscated goods or materials upon payment of redemption
charges equivalent to the market value of such goods or
materials.
- Confiscation of conveyance-
- Any conveyance or animal which has been, is being, or is
attempted to be used, for the transport of any goods or
materials that are imported and which are liable to
confiscation under rule 17, shall be liable to be confiscated
by the Adjudicating Authority unless the owner of the
conveyance or animal proves that it was, is being, or is
about to be so used without the knowledge or connivance of
the owner himself, his agent, if any, and the person
in-charge of the conveyance or animal and that each of them
had taken all reasonable precautions against such use.
- The Adjudicating Authority shall permit redemption of the
confiscated conveyance or animal used for the transport of
goods or passengers for hire upon payment of redemption
charges equivalent to the market value of such conveyance or
animal.
[File No. 21/11/92-LS]
Dr. P.L. SANJEEV REDDY.
Director General
Foreign Trade and Ex-Officio Addl. Secy.
SCHEDULE
(See rule 5)
The following fee shall be leviable in respect of the application for an import licence etc.
SCALE OF FEE
Sl.No. Particulars Amount of Fee
1 2 3
1. Where the value of goods specified in application Rupees two hundred
does not exceed Rupees fifty thousand.
2. Where the value of the goods specified in the application Rupees two per thousand or part
exceeds Rupees fifty thousand but does not exceed Rupees thereof subject to a minimum of
rupees one crore. two hundred.
3. Where the value of the goods specified in the application Rupees two per thousand or part
exceeds rupees one crore thereof subject to a maximum of
Rs.one lakh and fifty thousand
4. Application for grant of duplicate licence Rupees two hundred
5. In case where import licence and other correspondence Rupees two hundred
are required by Speed Post.
6. Application for issue of an Identity Card. Rupees two hundred
7. Application for issue of duplicate Identity Card in the Rupees one hundred
event of loss of original Card.
8. Extension of the period of shipment of an Import licence Rupees two hundred
Application for grant Split up licence Rupees one thousand per
split-up licences
Note- The amount of fee payable shall be rupees two hundred in respect of an application for import licence
by a small scale actual user or a registered exporter, for the import of raw materials, components and
spares where the value of the goods specified in the application does not exceed rupees two lakhs.