TaxTMI 
TaxTMI 
TaxTMI 
GUIDELINES FOR SETTLEMENT OF TRADE DISPUTES AND COMPLAINTS
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....sp; ACTION AGAINST ERRING EXPORTERS A. Enforcement action in the office of Director General of Foreign Trade against erring exporters can be taken under the existing Rules & Regulations depending on the offence as follows:- Non-payment of commission, supply of sub-standard goods, non-adherence of delivery schedules, indulgence in unethical commercial dealings, amount to breach of contract for which action can be taken under clause 7 of the Export (Control) Order, by which the Central Government or Director General of Foreign Trade or an authorised officer may debar an exporter from exporting any goods if he commits a willful breach of contract. This applies to the cases pertaining to a period prior to 19-6-1992. However, cases pertaining to a period on or after, 19.6.1992 enforcement action is taken in terms to Foreign Trade (Development & Regulation) Act, 1992 and Rules framed thereunder namely: (i) Section 8 empowers the Director General of Foreign Trade to suspend or cancel the Importer/ Exporter Code Number which is a prerequisite for any export or import, where the....
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....bsp; (V) The Director General of Foreign Trade has powers under para 2.69 of chapter 2 of the Hand Book of Procedures 2009-14 formulated in exercise of powers conferred under Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, to direct any Registering Authority to register or deregister an exporter or otherwise issue such directions to them consistent with and in order to implement the provisions of the Act, the Rules & Orders made thereunder, the Policy or the Hand Book. Besides , the Registering Authorities viz. Export Promotion Councils, Commodity Boards etc. may also take appropriate necessary action and view on the application furnished by the exporters for registration if, prima-facie, there are reasons to believe that he has indulged in any form of unfair, corrupt or fraudulent practice. Adequate Opportunity is to be provided to the exporter to explain his stand before resorting to penal action by way of issuance of Show Cause Notice, personal hearing etc., as per rules. B. Certain export products have been notified for Compulsory Quality Control & Pre-shipment Inspectio....
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....ffective steps for redressing the grievance of overseas complainants and to avoid unnecessary correspondence, detailed information regarding the complaint should be furnished by the complainants in the first instance itself. This will not only help the investigation but will also minimise the time in examination of the complaint and in turn it's settlement. It has, therefore, been decided that complaints as far as possible, should be made in the prescribed proforma as per Annexure I & II, as the case may be, duly supported by photo copies or relevant documents preferably in duplicate. MACHINERY FOR SETTLEMENT The Export Commissioner/Joint Director General of Foreign Trade in the office of Director General of Foreign Trade, Udyog Bhavan, Maulana Azad Road, New Delhi-110 011 has been designated as the 'Nodal Officer' for the purpose of dealing with trade disputes and complaints. It is imperative, therefore, that all information concerning a articular trade dispute or complaint is received by the 'Nodal Officer' so as to arrange for its just and amicable settlement within a specified period. &nb....
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....nbsp; I. A."Standing Committee" under the chairmanship of the Additional Secretary/Chief Controller of Imports and Exports, Ministry of Commerce (Now Director General of Foreign Trade) was set up by the Ministry of Commerce in July, 1978 to examine complaints regarding the export of sub-standard goods and determine ways and means to eliminate them. The Export Inspections Agency-Bombay (which is under the administrative and technical control of Export Inspection Council of India, Ministry of Commerce) was made central point to collect quality complaints from all sources and forward them to the respective agencies for investigation and further action. In May, 1981, 'Regional Committees' at Mumbai, Calcutta, Kochi, Delhi and Chennai were setup. Five more regional Committees have also now been set up to augment and to investigate quality complaints at Ahmedabad, Bangalore, Kanpur, Ludhiana and Hyderabad and who will examine quality complaints pertaining to their region and initiate prompt and effective steps to redress the grievances of the overseas buyers. These Committees will also be responsible to suggest steps for arresting recurre....
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....cable and conciliation does not take place and the matter does not go for arbitration etc. in terms of contract and the 'Regional Committee' find that the fault lies with the Indian Exporters or that they are not cooperating, such cases will be transferred to the 'Nodal Officer' or the Trade Disputes Cell with a copy to the Territorial Division in Ministry of Commerce along with their recommendation/report for further necessary action as per policy including in appropriate cases, legal action. Deliberate malpractices on the part of the exporter shall be dealt with under the penal and adjudication provisions of the Export (Quality Control & Inspection) Act, 1963 as amended in 1984, erstwhile Import and Export (Control) Act, Export (Control) Act, 1992 and such other laws as may be found appropriate. VI. The 'Nodal Officer' will consider such cases reported by the 'Regional Committees' and after examination, initiate appropriate penal action to de-register/debar the exporter and/or take such action as per law as considered necessary, including, in appropriate cases, legal action depending upon the ....
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....oncerned Territorial Division in the Ministry of Commerce for information. (ii) The Export Promotion Council/Commodity Board (Registering Authority) would arrange to get these considered and examined through a 'complaint Panel/Committee' specially constituted for this purpose. (iii) The 'Complaint Panel/Committee' would investigate and make efforts to settle the complaint amicable within three months from the date of receipt of the complaint from the office of the 'Nodal Officer' viz. Trade Disputes Cell. (iv) The Council/Board will submit monthly reports to the 'Nodal Officer' who will monitor the progress of action taken for settlement of the dispute. (v) If the disputes are settled to the satisfaction of the foreign buyer through conciliation, and/or of the Complaint Panel/Committee, after considering the facts of the case, decide that the Indian Exporter/Manufacturer is not to be blamed and/or that the ....
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....t of all cases referred to them with details of action taken to the Trade Disputes Cell in the office of Director General of Foreign Trade. OTHER COMPLAINTS (i) The 'Nodal Officer' will have these cases examined and dealt with in the trade disputes cell in the office of Director General of Foreign Trade. Initially efforts will be made to arrange for settlement of the complaint amicably, failing which action will be taken against the erring firms in terms of the Foreign Trade (Development & Regulation) Act. In cases where it is felt that action has to be taken by any other authority in Government of India, such cases will be referred to respective competent authority for suitable action as per the gravity of the offences. (ii) The 'Nodal Officer' will send a report of action taken in such cases against the exporters to the concerned Territorial Division in the Ministry of Commerce. Efforts will be made to concretise action in such cases within three months of the receipt of the complaint.  ....
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.... Whether the supplier is a merchant exporter or a manufacturer exporter 4. Particulars of complaint (Attach separate sheets if required) 5. Total quantity & value of consignment (Please furnish copy of shipping invoices) 6. Quantity & amount of claim, if any 7. Particulars of contract/L.C. if any giving details of technical requirements stipulated (copy may be furnished) 8. Whether any sample was approved? (Give particulars) 9. Whether any agency was nominated for inspection prior to shipment. 10. Date of arrival of goods at the destination port. 11. Condition of the goods at destination port. 12. Bill of Lading/Airways Bill No.(Copy may please be furnished) 13. Whether consignment was in sealed condition? If so, give particulars of seal used. 14. Whether exporter forwarded copy of inspection certificate(Please furnish copy) 15. A) Whether any independent survey of the goods was done(Please furnish copy of every report) b) Whether survey was carried out with or without the consent of supplier? 16. Whether quality defects were also covered by insurance(for perishable goods) 17. Whether imports were effected from this supplier/exporter in the past? 18. Any complaints....