Export Trade Control
Export of goods is considered to be a major source of economic growth. Every Country wants to promote its exportation and wants to rely less on imports. However, export is been done to an extent only. Export of essential commodities need to be regulated by government. This is known as “ Export Trade Control ”.
Government continuously provides incentives and facilities in order to promote exports and at the same time Export Trade control is exercised over those commodities that are vital for economy. For this regulatory act “Foreign Trade (Development and Regulation Act, 1992) and Foreign Trade (Regulation) rules, 1993 were enacted. This act provides for the development of foreign trade by facilitating imports and augmenting exports. Besides this The new Export-Import policy, 1997-2002 has also exercised control over foreign trade by introducing negative list.
What are items included in Negative List?
Ans. The new EXIM policy has included certain items in a list (called “The negative list”) import or export of which is either prohibited or restricted through licensing or canalised. Items that are not included in negative list are freely tradable.
The negative list of exports is divided into three parts:-
- Restricted Items:- Export or import of these items are restricted through licensing i.e. these goods can be exported or imported only in accordance with a licence issued in this behalf. An application for grant of license shall have to be made in the prescribed form to DGFT (Director general of foreign Trade) or its regional licensing authority. The application shall be accompanied by the documents prescribed therein. The export licensing committee shall consider the matter and may issue the license validity period of which will be 12 months or such shorter period as the licensing authority may specify.
- Prohibited Items:- These items cannot be exported. Examples of prohibited items are as follows:-
- Wild life
- Wood products
- Charcoal, etc.
- Canalised Items:- These items can be exported or imported only through canalising agencies that are been mentioned in the negative list. However, DGFT may grant a license to any other person who can export or import any canalised items.
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