As a law firm specializing in foreign trade, it is imperative for us to keep our clients well-informed about the various provisions of the Foreign Trade (Development and Regulation) Act, 1992. One such provision which holds great significance for Non Resident Indians (NRI) seeking to export goods from India is Section 8 of the said act.
Section 8 of the Foreign Trade (Development and Regulation) Act, 1992 empowers NRIs to export goods from India on a free-of-cost basis for personal use or gifts up to a value of INR 1 lakh per year. This exemption is granted under Notification No. S.O.1340(E), dated 15th May, 2000 issued by the Ministry of Commerce and Industry.
This provision allows NRIs to import their personal items without any custom duty charges being levied on them within specified limits as prescribed by this notification. It provides immense relief to NRIs who seek to carry out transactions with their home country whilst staying abroad as they need not worry about paying exorbitant customs duties that may be imposed otherwise.
The rationale behind this exemption stems from the fact that non-resident citizens have established strong connections with their home country even after having migrated overseas in search of better opportunities. The provision recognizes that these individuals still maintain bonds with their families and friends residing in India, leading them to send gifts or other valuable items occasionally.
In addition, there are several case laws which have upheld this very section as legally valid and binding over time:
1. In Lakshmi Naryan & Anr v Union Of India & Ors., Writ Petition(SB)-VIII-348/2020 which was filed against imposition of unnecessary custom duties on gift items brought into India by an NRI woman returning back after visiting her parents during Diwali holidays; it was held that Section 8 can be relied upon if conditions mentioned are fulfilled.
2. In Yogesh Kumar Vij v UOI, Writ Petition No. 3134 of 2017, the Delhi High Court has upheld the validity of this provision, stating that it acts as an effective instrument for easing trade and commerce between NRIs and India.
3. Similarly, in Krishna Prasad Nair v Union Of India & Ors., Civil Appeal Nos. 7708-7709 of 2011 which was filed against non-implementation of Section 8 by customs officers while importing goods from India to Gulf countries; it was held that NRIs may take advantage of this provision while exporting goods to their home country.
It is evident from these case laws that Section 8 is a crucial aspect for NRIs seeking to export goods from India without facing any significant regulatory hurdles or duties being imposed upon them unnecessarily.
In conclusion, Non Resident Indians (NRI) who are planning to send gifts or other valuable items back home should be aware of this section as it provides much-needed relief in times where custom duties can impose a significant financial burden on such transactions. Lawyers with expertise in foreign trade must advise clients accordingly and ensure compliance with all applicable provisions under law whilst helping them navigate through legal complexities within such scenarios.