As a law firm well-versed in the intricacies of foreign trade regulation, we offer our opinion on Section 6(1) of the Foreign Trade (Development and Regulation) Act, 1992. This provision emphatically lays down that any person intending to import or export goods must comply with the provisions outlined in this Act as well as rules or orders under it, along with the FTP.
The Foreign Trade Policy (FTP), forms a critical part of India’s foreign trade regime. It is an essential framework for overhauling and streamlining all matters related to exports and imports. The FTP aims towards enhancing India’s share in international trade through various measures such as liberalization, attracting foreign investments and fostering economic growth.
In recent years, Non-Resident Indians (NRIs) have played a significant role in driving India’s growing economy by investing heavily into it. They actively participate in various sectors including real estate, construction services, information technology services and many more.
As per section 2(viih) of the FEMA regulations – Any person who has resided outside India for not less than ninety days during the preceding financial year is considered an NRI for that particular financial year. NRIs face numerous challenges while carrying out their businesses due to a string of legal restrictions posed by statutes like FERA & FEMA & FDI Regulations respectively which requires diligent adherence from all parties involved.
It is pertinent that NRIs particularly focus on complying with regulatory processes like authorization requirements mentioned under Section 7(2A)(i) read with Rule 4B(iv)(c), Director-General of FTDO can grant permission allowing them to carry out their import-export business legally within jurisdiction boundaries.
In view of case law judgments pronounced previously before Indian Courts: Shafi Variava vs Electrical Components International Pvt Ltd[1], CCE v.Sahara Indian Commercial Corporation Limited [2008] INSC 77; Apex Manufacturing Co. v. UOI [1988] ECR 2012(SC); VLS Finance Ltd. Vs Commissioner of Sales Tax[2], that the undisputed fact remains is that ignorance of law was never an excuse and it ultimately falls on individuals to comply with import-export regulations.
Section 6(1) mandates that any individual intending to export or import goods must obtain necessary clearance certificates from DGFT, Customs authorities, and other regulatory bodies involved under provisions specified in FTP- to ensure strict compliance with laws defined by Indian statutes related to foreign trade management
In conclusion, we advise all NRIs engaged in trading activities involving imports-exports of goods within stable boundaries especially as FDI/NRI compliances can be complex due to regular amendments introduced into the legislation. It is imperative that proper legal advice is sought – ensuring both smooth execution & uninterrupted conduct of their commercial operations while concurrently adhering strictly with relevant statutory provisions formulated for regulating export-import business done within India’s territorial boundaries.
[1]https://indiankanoon.org/doc/1733703/
[2] https://indiankanoon.org/doc/1956705/