FOREIGN TRADE REGULATION RULES, 1993
(1) These rules may be called the Foreign Trade (Regulation) Rules, 1993.
(2) They shall come into force on the date2 of their publication in the Official Gazette.
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1. Vide G.S.R. 791(E), dated 30th December, 1993, published in the Gazette of India, Extra., Pt. II, sec. 2(ii), dated 30th December, 1993.
2. Came into force on 30-12-1993.
In these rules unless the context otherwise requires,—
(a) “Act” means the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992);
(b) “charitable purpose” includes relief of the poor, education, medical relief, and the advancement of any other object of general public utility;
(c) “importer” or “exporter” means a person who imports or exports goods and holds a valid Importer-exporter Code Number granted under section 7;
(d) “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;
(e) “Policy” means export and import Policy formulated and announced b
(1) 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:—
(1) that the denial of a special licence is likely to affect the Foreign Trade of India adversely; or
(2) that the suspension or cancellation of the Importer-exporter Code Number is likely to lead to non-fulfilment of any obligation by India under any international agreement;
(3) The special licence granted to any person under sub-rule (1) shall be non-transferable.
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.
(1) Every application for a licence to import shall be accompanied by the fee specified in the Schedule.
(2) The mode of deposit of fee shall be as specified in the Schedule.
(3) No fee shall be payable in respect of any application made by—
(a) the Central Government, a State Government or any department or any office of the Government;
(b) any local authority for the bona fide import of goods required by it for official use;
(c) any institution set up for educational, charitable or missionary purposes for the import of goods required for its use;
(d) an applicant for the import of any goods (other than a vehicle) if the im
(1) It shall be deemed to be a condition of every licence for export that—
(i) no person shall transfer or acquire by transfer any licence issued by the licensing authority except in accordance with the provisions of the Policy;
(ii) the goods for the export of which the licence is granted shall be the property of the licensee at the time of the export.
(2) The licensing authority may issue a licence for import subject to one or more of the following conditions, namely:—
(a) 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;
(b) that
(1) The Director General or the licensing authority may for reasons to be recorded in writing, refuse to grant or renew a licence if—
(a) the applicant has contravened any law relating to customs or foreign exchange;
(b) the application for the licence does not substantially conform to any provision of these rules;
(c) the application or any document used in support thereof contains any false or fraudulent or misleading statement;
(d) 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;
(e) any action against the applicant is for the time b
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.
(1) The Director General or the licensing authority may by order in writing, suspend the operation of a licence granted to—
(a) 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 of 1974); or
(b) 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 person,—
The Director General or the licensing authority may, by an order in writing, cancel any licence granted under these rules, if—
(a) the licence has been obtained by fraud, suppression of facts or misrepresentation; or
(b) the licensee has committed a breach of any of the conditions of the licensee; or
(c) the licensee has tampered with the licence in any manner; or
(d) the licensee has contravened any law relating to customs or foreign exchange or the rules and regulations relating thereto.
On the importation into, or exportation out of, any customs port 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 to a declaration of the truth of such statement at the foot of such bill of entry or shipping bill or any other documents.
On the importation into, or exportation out of, any customs port of any goods, the importer or exporter shall, in the bill of entry or 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.
(1) 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.
(2) No person shall dispose of any goods imported by him against a licence except in accordance with the terms and conditions of such licence.
(1) 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.
(2) No person shall employ any corrupt or fraudulent practice for the purposes of obtaining any licence of importing or exporting any goods;
(1) Any person authorised by the Central Government under sub-section (1) of section 10 (hereinafter called “the authorised person”) may, as any reasonable time, enter any premises in which—
(i) any imported goods or materials which are liable to confiscation under the provisions of the Act; or
(ii) any books of account 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 of account, documents or things and may take such notes or extracts therefrom as he thinks fit.
(2) If the authorised person has reasons to believe that—
(i) any
(1) 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:—
(i) 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 mens rea 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
(ii) 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
(iii) where the person imp
(1) Any imported goods or materials in respect of which—
(a) any condition of the licence, or letter of authority under which they were imported, relating to their utilisation or distribution; or
(b) 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
(c) any condition imposed under the policy with regard to the sale 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 othe
(1) 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.
(2) 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.
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