India
Answer ... Similar to imports, exports are cumulatively governed under the Foreign Trade (Development and Regulation) Act and the Foreign Trade Policy 2015-2020 (FTP) issued thereunder, read with the Customs Act and the Customs Tariff Act. Exports are made in accordance with the Indian Trade Classification (Harmonised System) 2022 (ITC(HS)) based export policy prescribed under Schedule 2 appended to the FTP (‘Export Policy’); and export duties are levied depending on the ITC (HS) classification of goods provided under the Second Schedule appended to the Customs Tariff Act (‘Export Tariff’).
The Export Policy classifies products into three categories, based on the ITC(HS) classification and the classification under the special/sensitive categories of products:
- Free: Exports allowed without restriction.
- Restricted: Exports allowed, subject to procurement of the relevant registration/licence/authorisation.
- Prohibited: Exports not allowed.
Similar to imports, as per the Export Policy, exports must comply with other regulatory laws as may apply, such as:
- the Explosive Substances Act 1908;
- the Narcotic Drugs and Psychotropic Substances Act 1985;
- the Environment Protection Act 1986;
- the Atomic Energy Act 1962; and
- the Arms Act 1959 and the Arms Rules 1962.
As India is a signatory to major multilateral export control regimes (eg, the Missile Technology Control Regime, the Wassenaar Arrangement and the Australia Group) and international conventions on non-proliferation (eg, the Chemical Weapons Convention and the Biological and Toxic Weapons Convention), the export of sensitive/special materials included on the list of “Special Chemicals, Organisms, Materials, Equipment and Technologies” under the FTP (‘SCOMET List’) is restricted. The SCOMET List assigns goods to eight broad categories, which are further subdivided based on the use, technical and functional features of the product. The export of goods covered under the SCOMET List requires a mandatory licence/authorisation for export issued by the relevant user ministry.
The duties applicable to the export of goods are provided under the Second Schedule appended to the Customs Tariff Act (‘Export Tariff’). The export duty for most goods is nil rated and imposed only on a few types of goods, such as coffee, tea, specified spices and specified rice varieties.
India
Answer ... Exports are cumulatively governed by the Directorate General of Foreign Trade (DGFT) and Indian Customs.
India
Answer ... The DGFT, along with the customs administration, closely monitors and vigorously enforces trade in export control goods, such as SCOMET items, to prevent their use for illegitimate purposes.
India
Answer ... The procedure to challenge any export decision is governed under the specific law under which the decision was passed (eg, the Customs Act or the Foreign Trade (Development and Regulation) Act (‘FTDR Act’)). The procedure to be followed under the Customs Act is similar to the procedure and stages for imports (see question 2.8).
If a decision has been made specifically on a violation of the FTDR Act or the rules or regulations made thereunder, the adjudication stages are as follows:
- At the initial stage, the dispute is heard either by the DGFT or by any other officer under its delegation.
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An appeal will lie with either:
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- the central government, where the order was passed by the DGFT; or
- the DGFT, where the order was passed by any officer below the DGFT.
- Any challenge to the order passed at the appellate stage may be preferred by way of a writ petition before the jurisdictional high court or the Supreme Court.
The central government also has the power to review an order passed by the DGFT.
India
Answer ... Violations of export controls are cumulatively governed under the FTDR Act and the Customs Act. An exporter that violates or contravenes the laws may be subject to:
- cancellation/suspension of its importer-exporter code;
- refusal to grant or renew a licence, or cancellation or refusal of a certificate, scrip or any other instrument bestowing financial or fiscal benefit;
- a fine of up to five times the value of the goods;
- proceedings for the confiscation of goods, if they have not crossed the customs border; and
- criminal prosecution for imprisonment of the offender for up to seven years, with or without a fine.
In case of violation of the conditions applicable to products covered under the SCOMET List, the penal implications (imprisonment) provided under the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act 2005 may also apply. Further, punitive proceedings under foreign exchange laws may also be initiated.