Page 241 - DECO303_INDIAN_ECONOMY_ENGLISH

Indian Economy

Notes 14.2.1 Director General of Foreign Trade

The Central government employs the Director General of Foreign Trade (DGFT) and other
officers such as Deputy Director, Additional Director, Joint Director, Assistant Director, and
Export Commissioner, etc.

Powers/Functions of DGFT

Powers and functions of DGFT are:
1. Issuing Importer/Exporter Code Number, and suspending or cancelling the same for
contravention of Customs Act, FERA, Central Excise Act, FTDR, etc.
2. Granting suspension or cancellation of licence for import or export.
3. Searching premises as well as inspection and seizure of goods, documents, conveyance,
etc.
4. Levying penalty for contravention of Act, rules, or EXIM policy.
5. Limit of powers to several grades of officers such as Additional Director, Dy. Director, etc.;
have been prescribed by informed orders under the Act.

Did u know? A person authorised by the government can enter any premises, search and
seize goods, documents, things and conveyances. Such search and seizure should be as per
provision of the Criminal Procedure Code (Section 10 of FTDR).
Penalty and Adjudication under FTDR

You must keep in mind that penalty up to five times the value of goods can be levied. The
contravening goods and conveyance conducting the goods are liable to confiscation. ‘Adjudicating
Authority’ can order penalty and confiscation. Adjudicating and Appellate Authority have the
entire powers of the Civil Court for summoning and imposing attendance of witnesses, needing
production of documents, or calling for public record from any office or court, receiving proof
by affidavits, or issuing Commission for inspection of witnesses and documents [Section 17].

14.2.2 Incentives and Promotions for Export

Indian government backs and endorses exports in the following way:
1. Export Promotion Capital Goods Scheme (EPCG): To decrease the price of goods produced
for export to contest in the international market, this scheme was launched. Under the
EPCG scheme, capital goods imported for manufacture were charged less imports duties
subject to an export obligation to be completed over a period of time.
Zero duty EPCG scheme permits import of capital goods for pre-production, production
and post-production (involving CKD/SKD, thereof, as well as computer software systems)
at Zero Customs duty, subject to an export obligation equal to six times of duty saved on
capital goods imported under EPCG scheme, to be achieved in six years calculated from
Authorisation issue-date.
The scheme will be accessible for the exporters of engineering and electronic products,
apparels and textiles, basic chemicals and pharmaceuticals, plastics, handicrafts, chemicals
and allied products, leather and leather products, etc.

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