Principles of Restrictions and Prohibitions for Imports and Exports –Para 2.07 of FTP Provision Amended

·    DGFT Lists 17 Criteria to Check Imports and Exports to Replace Nine Existing Ones

·    Industry Protection (Violative of WTO Art 10 of GATT 1994) included Upfront

·    Move said to be in Line with International Agreements!

[DGFT Notification No. 17/2015-2020 dated 10 August, 2021]

Effect of the Notification: Para 2.07 of the FTP regarding principles of prohibition and restrictions, is amended to be in line with international agreements.

Subject: Amendment in Para 2.07 of Foreign Trade Policy, 2015-2020.

S.O.(E): In exercise of powers conferred by Section 3 read with Section 5 of FT(D&R) Act, 1992, read with paragraph 1.02 and 2.0 I of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central Government hereby amends the existing Para 2.07 of Foreign Trade Policy, 2015-2020 to read as under:

2. 07 Principles of Restrictions and Prohibitions for Imports/Exports:

Existing Provision

Revised Provision

DGFT may, also through a Notification, impose prohibitions or restrictions on export and import, necessary for:-

(a) Protection of public morals;

(b) Protection of human, animal or plant life or health;

(c) Protection of patents, trademarks and copyrights, and the prevention of deceptive practices;

(d) Protection of use of prison labour;

(e) Protection of national treasures of artistic, historic or archaeological value;

(f) Conservation of exhaustible natural resources;

(g) Protection of trade of fissionable material or material from which they are derived;

(h) Prevention of traffic in arms, ammunition and implements of war;

(i)  Relating to the importation or exportation of gold or silver.

DGFT may, through a Notification, impose 'Prohibition' or 'Restriction':-

a. on export of foodstuffs or other essential products for preventing or relieving critical shortages;

b. on imports and exports necessary for the application of standards or regulations for the classification, grading or marketing of commodities in international trade;

c.  on imports of fisheries product, imported in any form, for enforcement of governmental measures to restrict production of the domestic product or for certain other purposes;

d.  on imports to safeguard country's external financial position and to ensure a level of reserves.

e. on imports to promote establishment of a particular industry;

f.   for preventing sudden increases in imports from causing serious injury to domestic producers or to relieve producers who have suffered such injury;

g. for protection of public morals or to maintain public order;

h. for protection of human, animal or plant life or health

i    relating to the importations or exportations of gold or silver;

J.   necessary to secure compliance with laws and regulations including those relating to the protection of patents, trademarks and copyrights, and the prevention of deceptive practices

k. relating to the products of prison labour

l.   for the protection of national treasures of artistic, historic or archaeological value

m. for the conservation of exhaustible natural resources

n. for ensuring essential quantities for the domestic processing industry

o.  essential to the acquisition or distribution of products in general or local short supply;

p. for the protection of country's essential security interests:

i.   relating to fissionable materials or the materials from which they are derived;

ii.   relating to the traffic in arms, ammunition and implements of war;

iii.  taken in time of war or other emergency in international relations; or

q.  in pursuance of country's obligations under the United Nations Charter for the maintenance of international peace and security.

This is issued with the approval of Minister of Commerce & Industry.

(File No.O1/93/180/32/AM-19/PC-II(B)/E-17430)