Government of India

Ministry of Commerce &  Industry

Department of Commerce

Directorate General of Foreign  Trade

Udyog Bhawan, New Delhi

*****

Trade Notice  No. 18/2018

Dated the 23 rd October, 2017

To

All Importer  and Exporters

All Export Promotion  Councils/FIEO

 All RAs/Customs Authorities  at ports

Subject:  -Non-compliance of Sanitary  and  Phyto-Sanitary  measures  by Indian  Exporters /Importers- reg.

Attention of Trade  and Industry,  involved  in business  of Import  and export  is  invited  towards  the agreement on the 'Application of Sanitary and  Phyto-sanitary Measures'  (the "SPS  Agreement") which came  into  force  with the establishment  of the  World  Trade Organization on I January  1995.  It concerns the applications  of food  safety  and animal  and  plant  health  regulations.  India  is signatory  to this  agreement,  being member of WTO.

2.Department of Agriculture,  Co-operation  and Farmers' welfare  has brought   to the notice  of his Directorate about  various  instances  of non-compliance  of Sanitary/  Phyto-sanitary  measures by Indian Exporters  while exporting  goods. Importing  Countries have  been making  complaints against  Indian exporters,  which amounts  todisrepute  to the image of the country and that can adversely impact the interest  of other  exporters as well  as of country  as a whole. 

3. In this regard, attention  is drawn  to the following  provisions  of Section  8 (I) (b)  of Foreign Trade (Development and  Regulation)  Act, 1992  (as amended),  which  is  reproduced  as under:

"Suspension and  cancellation  of Importer-exporter Code Number.

8. (1) Where--

(b) the Director General  or any other  officer  authorized  by him  has reason  to believe  that  any person  has made an export or import  in a manner  prejudicial  to the trade  relations of India  with any foreign country  or to the interests of other  persons engaged  in  imports  or exports  or has brought  disrepute  to the credit or the goods of, or services or  technology provided from,  the country,

the Director  General or any other officer authorized by him may call for the record or any other  information from that person and may, after  giving to that person a notice  in writing informing him of the grounds on which it is proposed to suspend or cancel  the Importer-exporter Code  Number and after giving him a reasonable  opportunity of making  a representation  in writing  within such  reasonable  time  as may  be specified  in the notice and,  if that person so desires, of being heard,  suspend  for a period,  as may  be specified in the order,  or cancel the Importer-exporter Code Number granted to that person.

Sub section 3 (b) of section11 (2) of the Act provides:

Contravention of provisions of this Act, rules, orders and export and import policy

(2) Where any person makes or abets or attempts to make any export or import in contravention of any provision of this Act or any rules or orders made thereunder or the foreign trade policy,he shall be liable to a penalty of not less than ten thousand rupees and not more than five times the value of the goods or services or technology in respect of which any contravention is made or attempted  to be made,  whichever is  more."

4. In view of the provisions  quoted  above  and the mandatory  requirements  to be  followed  by  the exporters  from the country, the exporters  are sensitized to ensure that Sanitary and Phyto-Sanitary laws of importing countries are strictly  adhered to. They  are  advised  to seek   requirement  of importing  country along  with  export  order.  And,  while  exporting goods,  they  must  provide certificate(s)  from  designated agencies  along  with export  documents  indicating  the observance  of the norms mandated  by the importing  country.

5. Copy of this Trade  Notice is also being  forwarded  to the Department  of Revenue with  the  request  to advise  the field formations  of Customs  so as to ensure  that the  requirement  of  importing country exporter is adhered  to by the exporters while  making exports.

6. Any adverse  report  received subsequently  would  make  the exporter  liable  for  action  under the provisions of FT (DR)  Act, 1992  (as amended),  or under  any other law for the time being in force.

7. All  Export Promotion  Councils  and FIEO are requested  to give  wide  publicity  to  this Trade  Notice  in order to sensitize  their  members.

8. This issues with the approval of the Director General of Foreign  Trade.

(Rajbir Singh)

Dy. Director General of Foreign Trade

E-mail: rajbir.singh62@nic.in

(Issued from File No   01l18/HQ/2013-14/ECA-II)

Copy  to:

1. Department  of Agriculture,  Cooperation  and Farmers'  Welfare,  Krishi  Bhawan, New  Delhi- 110001

 2. Shri L. Satya Srinivas  JS (Customs),  CBEC,  North  Block  New  Delhi  -110001.