The FTDR Act is an important legislation that governs India’s foreign trade policies and regulations.
Objective of the FTDR Act
- To provide the development and regulation of foreign trade by facilitating imports into and augmenting exports from India.
- To create a legal framework for the orderly development and maintenance of foreign trade in India.
- To ensure that foreign trade is conducted in a fair and equitable manner.
Importance of the FTDR Act
- Provides the legal framework for the promotion of foreign trade in India.
- Helps in the creation of a level playing field for domestic producers and exporters.
- Facilitates the growth of the Indian economy by ensuring that foreign trade is conducted in an efficient, transparent and predictable manner.
Rules and Regulations under the FTDR Act
- The Director-General of Foreign Trade (DGFT) is responsible for administering the provisions of the Act.
- The Act empowers the Central Government to make rules and regulations for the development and regulation of foreign trade.
- The Act provides for the imposition of restrictions or prohibition on imports and exports for various reasons such as protection of public health, national security, and conservation of foreign exchange.
Export Policies under the FTDR Act
- The Act provides for various export promotion schemes such as Duty-Free Import Authorization (DFIA) Scheme, Merchandise Exports from India Scheme (MEIS), and Export Promotion Capital Goods (EPCG) Scheme.
- The Act also provides for export restrictions and prohibitions in case of national interest, public health, and environmental protection.
Import Policies under the FTDR Act
- The Act provides for the imposition of restrictions or prohibitions on imports for various reasons such as protection of public health, national security, and conservation of foreign exchange.
- The Act also provides for various import promotion schemes such as Advance Authorization Scheme, Duty-Free Import Authorization (DFIA) Scheme, and Export Promotion Capital Goods (EPCG) Scheme.
