4.

1 Overview of Export Control Laws

 Definition: Export control laws are regulations imposed by governments to oversee and
restrict the transfer of certain goods, technologies, and services across borders.
 Purpose:
 To protect national security.
 To control the flow of dual-use goods (items with both civilian and military applications).
 To comply with international obligations and trade agreements.
 To prevent illegal activities, such as trafficking, smuggling, and proliferation of weapons.

2. Key Concepts in Export Control

 Dual-Use Goods: Items that can be used for both civilian and military applications, often
subject to stricter regulations.
 Licensing: Most export control laws require exporters to obtain licenses for controlled items,
depending on the nature of the item and its end-use.
 Prohibited and Restricted Exports: Some items are banned or heavily restricted based on
international commitments (e.g., nuclear materials, arms) or government policy.
 End-Use and End-User Monitoring: To ensure that exported items are used responsibly and
not for harmful purposes, many governments require documentation about the end user
and intended use.

3. International Frameworks and Agreements

 Wassenaar Arrangement: A multilateral export control regime focused on conventional arms

and dual-use goods and technologies.
 Nuclear Suppliers Group (NSG): Regulates the export of nuclear materials and technology.
 Australia Group: Controls exports to limit the spread of chemical and biological weapons.
 Missile Technology Control Regime (MTCR): Restricts missile technology exports.

These frameworks set standards and guidelines that member countries integrate into their national
export control laws.

4. Major Components of Export Control Laws

 Licensing Requirements: Exporters must often apply for a license to export restricted goods.
Licenses are issued by relevant government authorities based on item classification, end-use,
and end-user information.
 Customs Regulations: Customs authorities enforce export controls at national borders, often
checking for compliance with declared goods.
 Reporting and Documentation: Exporters are typically required to file documentation with
authorities to declare exports, record shipments, and comply with legal obligations.
 Penalties for Non-Compliance: Violating export control laws can result in severe
consequences, such as fines, license revocations, imprisonment, or being barred from future
exports.

Export Control Laws in India

1. Foreign Trade (Development and Regulation) Act, 1992

 Objective: This Act provides the legal framework for controlling exports and imports in India.
It empowers the government to make provisions for the development and regulation of
foreign trade, with the goal of promoting, facilitating, and advancing trade.
  Key Provisions:
o The Central Government has the authority to prohibit, restrict, or regulate the
import or export of goods.
o The government can issue licenses, control policies, and regulate export-oriented
units.
o Directorate General of Foreign Trade (DGFT): The DGFT operates under this Act, and
it is responsible for implementing India's export and import policies.
2. EXIM (Export-Import) Policy

 Objective: Formulated by the Ministry of Commerce and Industry, the EXIM policy guides
India's foreign trade and aims to promote exports while maintaining domestic market
stability.
 Key Features:
o Duty Drawback Schemes: Provide refunds on duties paid on inputs used for
manufacturing exported goods.
o Export Promotion Capital Goods (EPCG): Offers exporters the ability to import capital
goods at reduced customs duties, subject to export obligations.
o Advance Authorization Scheme: Allows duty-free import of raw materials used for
manufacturing export products.
3. Customs Act, 1962

 Objective: This Act governs the export and import of goods across Indian borders and
regulates customs duties.
 Export Control Provisions:
o Export duties, restrictions, and prohibitions can be imposed on goods leaving Indian
borders.
o Customs authorities have the power to inspect, seize, and detain goods suspected of
violating export laws.
 Penalties and Offenses: Defines penalties for non-compliance with export regulations,
including penalties for false declarations, smuggling, and unauthorized exports.

4. Foreign Exchange Management Act (FEMA), 1999

 Objective: FEMA regulates cross-border exchange and payments, with the aim of facilitating
external trade and maintaining India's foreign exchange reserves.
 Export Control Provisions:
o Export proceeds must be repatriated within the prescribed timeframe.
o Exporters must furnish documents to authorized dealers, like banks, as required
under the law.

5. Special Economic Zones (SEZ) Act, 2005

 Objective: The SEZ Act aims to boost exports and attract foreign investment through
dedicated export-processing zones.
 Key Features:
o SEZs offer a more liberal regulatory environment, with exemptions on customs,
excise, and service tax.
o Units in SEZs are subject to specific export obligations to qualify for benefits.
6. The SCOMET List (Special Chemicals, Organisms, Materials, Equipment, and Technologies)

 Objective: India maintains the SCOMET list to control the export of dual-use items and
technology that could be used for both civilian and military purposes.
 Provisions:
 o Exports of SCOMET-listed items require prior approval from the DGFT.
o Exporters must comply with end-user declarations to prevent misuse of exported
goods.
7. Legal and Compliance Requirements

 Export Declaration Form (EDF): For shipping, exporters must file an EDF, providing shipment
details and relevant documentation.
 Penalties for Non-Compliance: Violations of export control laws may lead to fines,
prosecution, or imprisonment. Additionally, goods may be confiscated, and exporters may be
blacklisted.
8. International Agreements and Obligations - >India is a signatory to various international
agreements, including the World Trade Organization (WTO) and the Wassenaar Arrangement on
export controls for dual-use goods and technology, which influences its export control policies.

QUALITY CONTROL
Export Inspection Council of India In the WTO regime, as India's trading partners are installing
regulatory import controls, the EIC has also introduced voluntary certification programmes,
especially in food sector and is seeking recognition for its certification by official import control
agencies of its trading partners to facilitate easier access to their markets for Indian exporters. With
the liberalization of the trade regime, the role of EIAs has become voluntary for many items.
However, in the areas of Fish & Fishery Products, Dairy Products, Poultry Products, Eggs Products,
Meat & Meat Products and Honey, certification for exports remains mandatory. The EIAs are also
providing support, by way of training and awareness to the trade and industry for overall up
gradation of their quality and quality assurance systems, in line with international requirements.
Inspection Agency Recognition Scheme EIC continued to recognize Inspection Agencies under the
provisions of Section 7 (1) of Export (Quality Control and Inspection) Act, 1963. Under the EIC
Inspection Agency Recognition Scheme 2002, which is aligned with the International Standard on
Acceptance of Inspection Bodies, ISO/IEC 17020:1998, to make the scheme internationally
acceptable, 34 Inspection Bodies have so far been approved and notified by the Government of India

REGULATION ON GOODS

The 54th edition of the IATA Dangerous Goods Regulations incorporates all amendments made by
the Dangerous Goods Board and includes changes to the 2013–2014 edition of the ICAO Technical
Instructions. The following list is intended to assist the user to identify the main changes introduced
in this edition and must not be considered an exhaustive listing. The changes have been prefaced by
the section or subsection in which the change occurs.
Dangerous Goods Transported by Helicopters— Provisions have been added to the Regulations,
where applicable, to address specific requirements or differences for the transport of dangerous
goods by helicopter.

1—Applicability
1.2—Application of these Regulations The provisions applicable to Approvals and Exemptions have
been revised. 1.2.9—Application of Standards. A new paragraph has been added to clarify that if
there is a conflict, the provisions of the Regulations take precedence over that in any standards
referred to. 1.5—Training Requirement - Specific provisions, including a new Table 1.5.C, have been
added to address the dangerous goods training requirements applicable to staff of designated postal
operators. 1.5.6—The provisions applicable to instructor qualifications have been enhanced. 1.6—
Dangerous Goods Security The recommendations on dangerous goods security have been revised to
reflect changes to the determination of high consequence dangerous goods for radioactive materials.
2—Limitations
There have been extensive changes and additions to the provisions for dangerous goods permitted in
passenger and crew member baggage. These include:
2.4—Transport of Dangerous Goods by Post The types of dangerous goods permitted in international
air mail have been expanded to permit small lithium batteries when contained in equipment. The
ability of a postal operator to accept lithium batteries in the mail is subject to specific approval by the
civil aviation authority. 2.5—Dangerous Goods in Operator's Property The allowances for consumer
goods have been revised to delete safety matches and add in allowance for portable electronic
devices containing lithium batteries. 2.6.10—De Minimis Quantities. New provisions have been
added to address transport of very small quantities of certain dangerous goods.

Dangerous Goods
3.1.7.4—New test criteria have been added to determine when articles may be excluded from Class
1. 3.3.3—The provisions applicable to viscous flammable liquids have been revised and clarified.
3.6.2.2.3—New provisions have been added to address the transport of uncleaned medical
devices/equipment. 3.9.2.6—Provisions have been added to identify the requirements for lithium
batteries, including requirements for manufacturers to have a quality management system.

CONSERVATION OF FOREIGN EXCHANGE

As the statute goes, the COFEPOSA Act was enacted to provide for preventive detention in certain
cases for the purposes of:- a) Conservation and augmentation of foreign exchange (with reference to
Foreign Exchange Regulation Act, 1973 or FERA); and b) Prevention of smuggling activities and for
matters connected therewith. It is apparent thereof that the COFEPOSA Act credits its genesis to
immobilize persons who indulge in economic offences like smuggling, foreign exchange racketeering,
drug trafficking etc and to disrupt the machinery established for smuggling and foreign exchange
manipulation, with all their ramifications. Such smugglers, economic offenders and others of their ilk
subvert the law of the land to amass personal wealth thereby building their own empire complete
with all mechanics perpetuating nefarious activities further.

Summary

The control of exports in India involves a combination of acts, policies, and regulations, each
contributing to different aspects of trade. These laws collectively work to balance economic interests,
safeguard national security, and fulfill international obligations.