Explain the Imports and Exports Control ACT, 1947 of India.

Explain the Imports and Exports Control ACT, 1947 of India.

Objectives of the Trade Policy

1. To have favorable balance of payments and increases in foreign exchange reserves
2. To protect domestic industries from the competition from rest of the world
3. To encourage import substitution.
4. To encourage exports and for export promotion
5. To keep foreign exchange reserves up to a reasonable extent
6. To develop economy of India.

Imports and Exports (Control) Act, 1947:

The Imports and Exports (Control) Act 1947, empowers the Central Government to prohibit or control certain imports and exports in the public interest. The Act enables the Central Government to make provision for prohibiting, restricting or otherwise controlling

• The import, export, carriage, stores of goods of any specified deception.
• To bring into any part of place in India of goods of specified description intended to be taken out of India without being removed from ship or conveyance in which they are being carried.

The Government can also prohibit, restrict or impose conditions on the clearance, whether for homes consumption or for shipment abroad, of any goods or class of goods imported into India.

There are provisions in the Act according to which imported goods or materials can be confiscated in certain cases. An authorized person, "as specified in the Act, may enter, at any reasonable time, any premises in which any imported goods or materials which are liable to confiscation under this Act, are suspected to have been kept or concealed, and inspect such imported goods or materials as he may think fit. Such kinds of inspections may be made by the authorized person of any books of account or other documents or things which, in his opinion, will be useful for or relevant to, any proceeding under this Act. If the authorized person has any reason to believe that any such imported goods or materials or documents are secreted in any place, he may enter into and search such place or premises for them. If the authorized person has any reason to believe that any imported goods or materials are liable to confiscation under this Act, he may seize them. Where it is not practicable to seize any such 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 such authorized person.

4) While some commodities have tremendous exports potential handicrafts, engineering, and ready made), others (like sugar, yarn and manufactures, iron and steel) have proved hopeless.

 Any imported goods or materials in respect of which :

• Any condition of the license of letter of authority, under which they were imported, relating to utilization or distribution of such good or materials, or
• Any condition relating to the utilization or distribution of such goods or materials subject to which they were received from, or through, a recognized agency, or
• Any direction given under the control order in regard to the sale 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 confiscation 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 for confiscation.

It has been laid down in the Act that any authorized person may stop, or compel to lend, as the case may be, any conveyance or animal which is suspected to be used or is about to be used for the transport of any imported goods or materials liable for confiscation under this Act, and search/examine the conveyance and the goods or materials in the conveyance or on the animal.

Any means of transport which has been is being or is attempted to be, used for the transport of any imported goods or materials which are liable of the means of transport proves that it was, is being or is about to be, so if any, and the person in charge of the conveyance or animal, and that each of them has taken all reasonable precautions against such use. 

Imports (control) order:

In exercise of the powers conferred by the Import and Exports Control Act 1947, the Central Government made on 7th December, 1955 an order namely, the Imports (Control) Order, 1955. This order has been amended from time to time.

This Imports (Control) Order prohibits the import of any goods of the description specified on schedule I of the order except under, and in accordance with, a license or a customs permit granted by the Central Government or by any officer specified in schedule II of the order.

The order lays down that if, in any case, it is found that the goods imported under license do not conform in every respect 

1. To the description or value of the goods as contained in the license, or 
2. The other conditions realizing to such goods, contained in, or applicable to the license, the import of such goods shall be deemed to be prohibited.

The order states that the licensing authority issuing a license under this order may issue the same subject to one or more of the conditions stated below:

That the goods covered by the license shall not be disposed of except in the manner prescribed by the licensing authority or otherwise dealt with without the written permission of the licensing authority or any person duly authorized by it;

That the goods covered by the license on importation shall be sold or distributed at a price exceeding that which may be species in any direction attached to the license,

That the applicant for a license shall execute a bond for complying A license granted under the order shall also be subject to the conditions "Actual user conditions applicable to import licenses issue to "Actual Users contained in schedule V. which deals with certain payment conditions, and conditions applicable to licenses issued for the import of capital goods It has also been laid down that it shall be deemed to be a condition of with the terms subject to which a license may be granted every such license that

No person shall transfer and no person shall acquire by transfer any license issued by the licensing authority except under, and in accordance with, the written permission of the authority which granted the license or any person empowered in this behalf by such authority: ill the goods for the import of which a license is granted shall be the property of the licensee at the time of import and thereafter up to the time not apply to licenses issued to the State Trading Corporation of India, the Minerals and Metals Trading Corporation of India and other similar Institutions or agencies owned or controlled by the Central Government and which are entrusted with the canalization of imports. The above two conditions shall also not apply to the licenses issued to eligible Export Houses for the import of goods meant for disposal to actual users under the import policy for registered exporters; 

The goods for the import of which a license has been granted shall be new goods, other than disposal goods, unless otherwise stated in the license.

A license granted under this order may contain such other conditions, not inconsistent with the Act of or this order, as the licensing authority se deer the DiCenso shall comply with all the conditions imposed or deemed to be imposed order.

The order also deals with the details or matters like refusal of license; amendment of license; power to debar from importing goods or from receiving licenses or allotment of imported goods; power to suspend import of goods; grant of licenses or allotments of imported goods, power to keep in abeyance application for licenses or allotments or imported goods. Cancellation of licenses; declaration as to the value, sort, quality etc. of imported goods: utilization of imported goods; power to make directions for sale of imported goods in certain cases: exceptions from this order, etc.

Export control order:

In exercise of the power conferred by the Imports and Exports (Control) Act. 1947, the Central Government on 24th March, 1977.

The export control order restricts the export of certain goods. Accordingly, no person shall export any goods of the description specified by the Central Government or by an officer specified in schedule II of the order [clause 3(1)] The same rule is applicable to exports to Pakistan [Clause 3(2)].

Notwithstanding anything contained in sub-clauses (1) and (2) mentioned above, goods specified in schedule III of the order may be exported on fulfilment of the terms and conditions specified therein.

The order states that if, in any case, it is found that the value, sort, specification, quality and description of the goods to be exported are not in conformity with the declaration of the exporter in those respects, or if the quality and specification of such goods are not in accordance with terms of the export contract, the export of such goods shall be deemed to be prohibited.

It has been laid down in the Exports (Control) Order that a license granted under this order may contain such condition, not in consistent with the Imports and Exports (Control) Act, 1947, or this order, as the licensing authority may deem fit.

It shall be deemed to be a condition of every license that:

1. No person shall transfer and no person shall acquire by transfer any license issued by the licensing authority except under, and in accordance with, the written permission of the authority which granted the license or of any other person empowered in this behalf by such authority.
2. The goods for the export of which the licenses have been granted shall be the property of the licensee at the time of the export.

The licensee shall comply with all the conditions imposed or deemed to be imposed upon the relevant clause of the order.

The order also deals with the details of matters like refusal of licenses amendment of licenses, power to debar from receiving licenses of exporting goods, power to stop grant of licenses or permission to export goods, cancellation of licenses, declaration as to value, sort, quality, etc. of exported goods, prohibition regarding making, signing, etc., of any documentation, statement or document, exemptions from the order, etc.