Executive Summary:
Notification No. 17/2015-2020, dated August 10, 2021, amends Para 2.07 of the Foreign Trade Policy (FTP) 2015-2020. The amendment concerns the principles of restrictions and prohibitions on imports and exports. The aim is to align the policy with international agreements.
Key Points / Main Content:
Amendment of Para 2.07, FTP 2015-2020:
* The Directorate General of Foreign Trade (DGFT) can impose prohibitions or restrictions on exports and imports via notification.
Principles of Restrictions and Prohibitions:
Revised Provisions now include the ability to restrict export and import:
* To prevent or relieve critical shortages of foodstuffs or essential products.
* For the protection of public morals.
* For the protection of human, animal, or plant life or health.
* For the protection of patents, trademarks, and copyrights, and the prevention of deceptive practices.
* To prevent the use of prison labor.
* To protect national treasures of artistic, historic, or archaeological value.
* For the conservation of exhaustible natural resources.
* For ensuring essential quantities for the domestic processing industry and addressing product shortages.
* For the protection of the country's essential security interests, including fissionable materials, traffic in arms, and wartime measures.
* To fulfill obligations under the United Nations Charter for international peace and security.
* Regarding standards/regulations for classifying, grading, or marketing commodities.
* Regarding governmental measures to restrict domestic production, prevent deceptive practices, or other purposes related to fisheries products.
* To safeguard the country's external financial position and ensure reserve levels.
* To promote the establishment of a particular industry.
* To prevent sudden import increases causing serious injury to domestic producers, or to relieve producers who have suffered such injury.
* To maintain public order.
* To secure compliance with laws and regulations, including those related to intellectual property and deceptive practices.
Effect of the Notification:
* Para 2.07 of the FTP is amended to align with international agreements.
Impact Analysis:
Stakeholders Impacted: Entities Involved in Import and Export Activities
Impact: Must adhere to the revised principles of restrictions and prohibitions outlined in the amended Para 2.07 of the Foreign Trade Policy 2015-2020.
Action Required: Review and comply with the new regulations regarding import and export restrictions and prohibitions as per the amended policy.
Key Entities Referenced
Foreign Trade Policy, 20152020: A trade policy document which is being amended by this notification.
FTDR Act, 1992: Foreign Trade (Development and Regulation) Act, 1992, the enabling legislation for the Foreign Trade Policy.
Directorate General of Foreign Trade: The organization responsible for implementing the Foreign Trade Policy.
New Delhi: The city where the notification was issued.
Minister of Commerce and Industry: The government minister whose approval was required for the notification.
United Nations Charter: Mentioned in the context of country's obligations for the maintenance of international peace and security.
Para 2.07: Specific paragraph of the Foreign Trade Policy, 2015-2020 being amended.
Yogita Yadav: Director General of Foreign Trade, Ex officio Addl. Secretary to the Government of India
To be published in the Gazette of India Extraordinary Part-II, Section-3, Sub-Section (II)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Notification No. 17 /2015-2020
New Delhi, Dated: 10" August, 2021
Subject: Amendment in Para 2.07 of Foreign Trade Policy, 2015-2020.
S.0.(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 2.01 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
IDGFT may, also through a DGFT may, through a Notification, impose ‘Prohibition’ or
\Notification, impose prohibitions or ‘Restriction’: -
restrictions on export and import, a. on export of foodstuffs or other essential products
necessary for :- for preventing or relieving critical shortages;
(a)Protection of public morals; b. on imports and exports necessary for the application
of standards or regulations for the classification,
grading or marketing of commodities in
(b) Protection of human, animal or international trade;
plant life or health; on imports of fisheries product, imported in any
(c) Protection of patents form, for enforcement of governmental measures to
trademarks and copyrights, and the restrict production of the domestic product or for
prevention of deceptive practices; certain other purposes;
(d)Prevention of use of prison on imports to safeguard country’s external financial
labour; position and to ensure a level of reserves.
(e) Protection of national treasures on imports to promote establishment of a particular
of artistic, historic or archaeological industry;
value; for preventing sudden increases in imports from
(f) Conservation of exhaustible causing serious injury to domestic producers or to
natural resources; relieve producers who have suffered such injury;
(g) Protection of trade of for protection of public morals or to maintain public
fissionable material or material from order;
which they are derived; for protection of human, animal or plant life or
(h) Prevention of traffic in arms, health
ammunition and implements of war; relating to the importations or exportations of gold
or silver;
necessary to secure compliance with laws and
(i) Relating to the importation or regulations including those relating to the protection
exportation of gold or silver. of patents, trademarks and copyrights, and theprevention of deceptive practices
relating to the products of prison labour
for the protection of national treasures of artistic,
historic or archaeological value
m. for the conservation of exhaustible natural resources
for ensuring essential quantities for the domestic
B
processing industry
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
in’ternational peace and security.
Effect of the Notification: Para 2.07 of the FIP regarding principles of prohibition and
restrictions , is amended to be in line with international agreements.
This is issued with the approval of Minister of Commerce & Industry.
Coe —__—
ca1t0e\ Y03a\dav)
Director General of Foreign Trade &
Ex- officio Addl. Secretary to the Government of India
(File No.01/93/180/32/AM-19/PC-II(B)/E-17430)