legal dimesnions

8/10/2019 Legal Dimesnions

1/19

Legal Dimensions of Indias Foreign Trade

An Assignment

Submitted to

Prof. Navdeep Kaur

On November ! "#$%

Submitted &'(

)e*a+ ,upta

)&A I& - rdSemester

/oll Number( "$

1


2/19

TABLE OF CONTENTS

$. 0ontra1t Of la2s $

". Foreign trade development and regulation a1t! $33" $

. T*e foreign e41*ange management a1t! $333 %. 0ustoms A1t $35" $#

6. 7ualit' 0ontrol And Pre8s*ipment Inspe1tion A1t $"

5. T'pes of Legal Issues $"

. La2s related to Produ1t $

9. La2s /elated to :4port Import 0ontra1ts $

3. La2s /elating to /elations*ip bet2een e4porter and agent;distributor $6

$#. La2s /elating to 0redit 0ontra1ts $6

Conflict Of laws

2


3/19

:4porters *ave to deal 2it* different legal s'stems. &u'ers and t*e seller are at great

geograp*i1al distan1e from ea1* ot*er ! man' intermediaries li+e s*ipping ! airlines !

insuran1e 1ompanies and ban+s are involved and trade terms and usages differ a1ross t*e

1ountries.

)aAPT:/ I

P/:LI)INA/?

S*ort title and 1ommen1ement

$. @$= T*is A1t ma' be 1alled t*e Foreign Trade @Development and /egulation= A1t! $33".

@"= Se1tions $$ to $% s*all 1ome into for1e at on1e and t*e remaining provisions of t*is A1t

s*all be deemed to *ave 1ome into for1e on t*e $3t* da' of une $33".

D"finitions#

". In t*is A1t! unless t*e 1onte4t ot*er2ise reBuires(8

@a= CAd


4/19

@1= C1onve'an1eC means an' ve*i1le! vessel! air1raft or an' ot*er means of transport

in1luding an' animal

@d= CDire1tor ,eneralC means t*e Dire1tor ,eneral of Foreign Trade appointed under se1tion

5

@e= CimportC and Ce4portC means respe1tivel' bringing into! or ta+ing out of! India an' goods

b' land. sea or air

@f= CImporter8e4porter 0ode NumberC means t*e 0ode Number granted under se1tion

@g= Cli1en1eC means a li1en1e to import or e4port and in1ludes a 1ustoms 1learan1e permit and

an' ot*er permission issued or granted under t*is A1t

@*= COrderC means an' order made b' t*e 0entral ,overnment under se1tion and

@i= CPres1ribedC means pres1ribed b' rules made under t*is A1t.

C$APTERII

POE:/ OF 0:NT/AL ,O:/N):NT TO )AK: O/D:/S AND ANNOGN0:

:HPO/T AND I)PO/T POLI0?

Po2ers to ma+e provision relating to imports and e4ports.

. @$= T*e 0entral ,overnment ma' b' Order publis*ed in t*e Offi1ial ,aette! ma+e

provision for t*e development and regulation of foreign trade b' fa1ilitating imports and

in1reasing e4ports.

@"= T*e 0entral ,overnment ma' also! b' Order publis*ed in t*e Offi1ial ,aette! ma+e

provision for pro*ibiting. restri1ting or ot*er2ise regulating! in all 1ases or in spe1ified

1lasses of 1ases and sub


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0ontinuan1e of e4isting orders

%. All Orders made under t*e Imports and :4ports @0ontrol= A1t! $3% and in for1e

immediatel' before t*e 1ommen1ement of t*is A1t s*all! so far as t*e' are not in1onsistent

2it* t*e provisions of t*is A1t! 1ontinue to be in for1e and s*all be deemed to *ave been

made under t*is A1t.

:4port and import poli1'.

6. T*e 0entral ,overnment ma'! from time to time! formulate and announ1e b' notifi1ation

in t*e Offi1ial ,aette! t*e e4port and import poli1' and ma' also! in t*e li+e manner! amend

t*at poli1'.

Appointment of Dire1tor ,eneral and *is fun1tions.

5. @$= T*e 0entral ,overnment ma' appoint an' person to be t*e Dire1tor ,eneral of Foreign

Trade for t*e purposes of t*is A1t.

@"= T*e Dire1tor ,eneral s*all advise t*e 0entral ,overnment in t*e formulation of t*e

e4port and import poli1' and s*all be responsible for 1arr'ing out t*at poli1'.

@= T*e 0entral ,overnment ma'! b' Order publis*ed in t*e Offi1ial ,aette dire1t t*at an'

po2er e4er1isable b' it under t*is A1t @ot*er t*an t*e po2ers under se1tions !6!$6!$5 and

$3= ma' also be e4er1ised! in su1* 1ases and sub


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1lasses of 1ases and sub


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$#. @$= T*e 0entral ,overnment ma'! b' notifi1ation in t*e Offi1ial ,aette! aut*orise an'

person for t*e purposes of e4er1ising su1* po2ers 2it* respe1t to entering su1* premises and

sear1*ing inspe1ting and seiing of su1* goods! do1uments! t*ings and 1onve'an1es sub


8/19

on pa'ment b' t*e person 1on1erned of t*e redemption 1*arges eBuivalent to t*e mar+et

value of t*e goods or 1onve'an1e! as t*e 1ase ma' be.

Penalt' or 1onfis1ation not to interfere 2it* ot*er punis*ments.

$". No penalt' imposed or 1onfis1ation made under t*is A1t s*all prevent t*e imposition of

an' ot*er punis*ment to 2*i1* t*e person affe1ted t*ereb' is liable under an' ot*er la2 for

t*e time being in for1e.

Ad


9/19


10/19

@*= C1urren1'C in1ludes all 1urren1' notes! postal notes! postal orders! mone' orders! 1*eBues!

drafts! travellers 1*eBues! letters of 1redit! bills of e41*ange and promissor' notes! 1redit

1ards or su1* ot*er similar instruments! as ma' be notified b' t*e /eserve &an+

@i= C1urren1' notesC means and in1ludes 1as* in t*e form of 1oins and ban+ notes

@


11/19

.(0 Clegal pra1titionerC s*all *ave t*e meaning assigned to it in 1lause @i= of sub8se1tion @$= of

se1tion " of t*e Advo1ates A1t! $35$ @"6 of $35$=

.s0 2)emberC means a )ember of t*e Appellate Tribunal and in1ludes t*e 0*airperson

t*ereof

.t0 Cnotif'C means to notif' in t*e Offi1ial ,aette and t*e e4pression Cnotifi1ationC s*all be

1onstrued a11ordingl'

.30 CpersonC in1ludes8

@i= an individual!

@ii= a >indu undivided famil'!

@iii= a 1ompan'!

@iv= a firm!

@v= an asso1iation of persons or a bod' of individuals! 2*et*er in1orporated or not!

@vi= ever' artifi1ial


12/19

@i= t*e selling of su1* foreign e41*ange to an aut*oried person in India in e41*ange for

rupees! or

@ii= t*e *olding of realied amount in an a11ount 2it* an aut*oried person in India to t*e

e4tent notified b' t*e /eserve &an+! and in1ludes use of t*e realied amount for dis1*arge of

a debt or liabilit' denominated in foreign e41*ange and t*e e4pression CrepatriationC s*all be

1onstrued a11ordingl'

.60 C/eserve &an+C means t*e /eserve &an+ of India 1onstituted under sub8se1tion @$= of

se1tion of t*e /eserve &an+ of India A1t! $3% @" of $3%=

.6a0 Cse1urit'C means s*ares! sto1+s! bonds and debentures! ,overnment se1urities as defined

in *e Publi1 Debt A1t! $3%% @$9 of $3%%=! savings 1ertifi1ates to 2*i1* t*e ,overnment

Savings 0ertifi1ates A1t! $363 @%5 of $363= applies! deposit re1eipts in respe1t of deposits of

se1urities and units of t*e Gnit Trust of India establis*ed under sub8se1tion @$= of se1tion of

t*e Gnit Trust of India A1t! $35 @6" of $35= or of an' mutual fund and in1ludes 1ertifi1ates

of title to se1urities! but does not in1lude bills of e41*ange or promissor' notes ot*er t*an

,overnment promissor' notes or an' ot*er instruments 2*i1* ma' be notified b' t*e /eserve

&an+ as se1urit' for t*e purposes of t*is A1t

.670 Cservi1eC means servi1e of an' des1ription 2*i1* is made available to potential users and

in1ludes t*e provision of fa1ilities in 1onne1tion 2it* ban+ing! finan1ing! insuran1e! medi1al

assistan1e! legal assistan1e! 1*it fund! real estate! transport! pro1essing! suppl' of ele1tri1al or

ot*er energ'! boarding or lodging or bot*! entertainment! amusement or t*e purve'ing of

ne2s or ot*er information! but does not in1lude t*e rendering of an' servi1e free of 1*arge or

under a 1ontra1t of personal servi1e

.6c0 CSpe1ial Dire1tor @Appeals=C means an offi1er appointed under se1tion $9

.6+0 Cspe1if'C means to spe1if' b' regulations made under t*is A1t and t*e e4pression

Cspe1ifiedC s*all be 1onstrued a11ordingl'

.6"0 CTransferC in1ludes sale! pur1*ase! e41*ange! mortgage! pledge! gift! loan or an' ot*er

form of transfer of rig*t! title! possession or lien.

80 C3stos Act 19!

T*e 0ustoms A1t 2as formulated in $35" to prevent illegal imports and e4ports of goods.

&esides! all imports are soug*t to be sub


13/19

T*e lev' and t*e rate of 1ustoms dut' in India are governed b' t*e 0ustoms A1t $35" and t*e

0ustoms Tariff A1t $36. Imported goods in India attra1t basi1 1ustoms dut'! additional

1ustoms dut' and edu1ation 1ess.

C3stos +3t5 on I*o(ts an+ E)*o(ts

0ustoms dut' is on imports into India and e4port out of India. Se1tion $" of 0ustoms A1t!

often 1alled 1*arging se1tion! provides t*at duties of 1ustoms s*all be levied at su1* rates as

ma' be spe1ified under MT*e 0ustoms Tariff A1t! $36! or an' ot*er la2 for t*e time being in

for1e! on goods imported into! or e4ported from! India.

Basic C3stos D3t5

All goods i*o(t"+into India are 1*argeable to a dut' under C3stos Act, 19!.

T*e rates of t*is dut'! popularl' +no2n as basi1 1ustoms dut'! are indi1ated in t*e

First S1*edule of t*e C3stos Ta(iff Act, 1:;as amended from time to time under

Financ"A1ts.

T*e dut' ma' be fi4ed on ad 8valorem basis or spe1ifi1 rate basis.

T*e dut' ma' be a per1entage of t*e value of t*e goods or at a spe1ifi1 rate.

T*e 0entral ,overnment *as t*e po2er to redu1e or e4empt an' good from t*ese

duties.

A++itional .Co3nt"(4ailin


14/19

=0 >3alit5 Cont(ol An+ P("-s'i*"nt Ins*"ction Act

T*e international mar+et is ver' 1ompetitive and Bualit' of e4port produ1ts is one oft*e important determinants of business.

Inferior Bualit' of e4ports damages t*e 1redibilit' of not onl' t*e e4porter but also

t*e nation.

>en1e! t*ere s*all not be an' 1ompromise on Bualit' of e4ports.

O7?"cti4"s Of >3alit5 Cont(ol

$. Promoting and ensuring t*e image of Indian goods e4ported to ot*er 1ountries.

". :nsuring goods of assured Bualit' onl' move into t*e e4port mar+ets.

. Sustaining t*e foreign mar+et

%. Inspiring 1onfiden1e in t*e minds of foreign bu'ers

6. Ad*ering stri1tl' to te1*nologi1al reBuirements a11epted b' foreign bu'ers of t*e

produ1t.

5. :nsuring sound and safe performan1e of t*e produ1ts 2it*out 1ausing an' *ealt* or

safet' *aards.

. Observing 1onformit' of rules and regulations of t*e importing 1ountries

9. )aintaining proper pa1+aging for t*e safet' of t*e produ1t during transit.

3. :liminating t*e 1auses of 1omplaints

$#. )a4imiing produ1tion and effe1ting e1onomies b' International )ar+eting

standardiation.

T5*"s of L"


15/19

/elating to :4port Import 0ontra1ts

/elating to /elations*ip bet2een e4porter and agent;distributor

/elating to 0redit 0ontra1ts

10 Laws ("lat"+ to P(o+3ct

T(a+"Ma(/

A trademar+ or trade mar+ is a distin1tive sign or indi1ator of some +ind 2*i1* is used

b' an individual! business organiation or ot*er legal entit' to uniBuel' identif' t*e

sour1e of its produ1ts and;or servi1es to 1onsumers! and to distinguis* its produ1ts or

servi1es from t*ose of ot*er entities

A trademar+ is a devi1e 2*i1* 1an ta+e almost an' form! as long as it is 1apable of

identif'ing and distinguis*ing spe1ifi1 goods or servi1es.

!0 Laws R"lat"+ to E)*o(t I*o(t Cont(acts

L"


16/19

Acc"*tanc"

A11eptan1e of an offer 1an o11ur in several 2a's( A11eptan1e of an offer is a manifestation

of assent to t*e terms t*ereof made b' t*e offeree in a manner invited or reBuired b' t*e offer.

An a11eptan1e must not 1*ange t*e terms of an offer. If it does! t*e offer is reo2ever! parties ma' agree upon some 1ontra1tual terms! understanding t*em to be an

agreement and leave ot*er 1ontra1t terms to be made later. Full agreement on all 1ontra1tual

terms is t*e best pra1ti1e and s*ould be t*e norm. It is onl' 2*en an essential term is left

open for future negotiation t*at t*ere is not*ing more t*an an unenfor1eable agreement to

agree.

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17/19

Su1* an agreement is void as a 1ontra1t.

Consi+"(ation

0onsideration is an essential element of an' valid 1ontra1t. 0onsideration 1onsists of eit*er a

benefit to t*e promissor' or a detriment to t*e promise. It is a present e41*ange bargained for

in return for a promise. It ma' 1onsist of some rig*t! interest! profit! or benefit t*at a11rues to

one part'! or alternativel'! of some forbearan1e! loss or responsibilit' t*at is underta+en or

in1urred b' t*e ot*er part'. It is not ne1essar' for a 1ontra1t to be supported b' a monetar'

1onsideration.

80 Laws R"latin< to R"lations'i* 7"tw""n ")*o(t"( an+ a


18/19

needs reassuran1e t*at t*e standards applied b' ban+s in s1rutinising do1uments 2ill not var'

from 1ountr' to 1ountr'.

Eff"cts of t'" +oct(in" st(ict co*lianc"

T*e do1trine of stri1t do1umentar' 1omplian1e reBuires not onl' t*at t*e tendered do1uments

1onform to t*e terms and 1onditions of t*e do1umentar' letter of 1redit but t*at t*e' appear

on t*eir fa1e to be 1onsistent 2it* one anot*er. T*is reBuires t*at all t*e do1uments are

1onsistent 2it* one anot*er in t*e sense t*at t*e' ma+e up a set 2*i1* is apparentl' referring

to t*e same 1ontainer of goods. A measure of 1ertaint' is needed be1ause! if t*e do1uments

are re


19/19

REFERENCES

Foreign trade development and regulation a1t! $33" /etrieved online from

*ttp(;;dgft.gov.in;e4im;"###;do2nload;AppeRANF;9A.pdf

T*e foreign e41*ange management a1t! $333. /etrieved online from

*ttp(;;rbido1s.rbi.org.in;rdo1s;notifi1ation;PDFs;$".pdf

0ustoms A1t $35". /etrieved online from *ttp(;;222.1be1.gov.in;1ustoms;1s8a1t;1s8a1t8

id4.*tm

7ualit' 0ontrol And Pre8s*ipment Inspe1tion A1t. /etrieved online from

*ttp(;;1ommer1e.ni1.in;publi1ations;pdf;0>APT:/5.pdf

La2s /elating to 0redit 0ontra1ts. /etrieved online from

*ttp(;;ume4pert.um.edu.m';file;publi1ation;####9"653"3%.pdf

IN0OT:/)S. /etrieved online from *ttp(;;222.e4port.gov;faB;egmain#"3"".asp

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