9911796707
TMI BlogGUIDELINES FOR SETTLEMENT OF TRADE DISPUTES AND COMPLAINTSX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Director General of Foreign Trade has inter-alia reason to believe (a) that the exporter has committed an economic offence as specified by the Government or (b) that any person has made an expo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment 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 Inspection prior to their export. Penal action can be taken under the Export (Quality Control & Inspection) Act, 1963 as amended in 1984, against exporters who do not conform to the standards and or provisions of Act as laid down for such products. COMPLAINTS Besides Foreign Trade (Development & Regulation) Act and Export (Quality Control & Inspection) Act and Export (Quality Control & Inspection) Act, there are other laws such as Indian Coffee Act, Tea Act, Coir Industry Act, Dange ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arrange for its just and amicable settlement within a specified period. Different Authorities including Missions are dealing with or referring the trade disputes and complaints to different agencies in Government of India. No uniform procedure is being followed which makes their monitoring difficult. It has now been decided by the Ministry of Commerce that all trade disputes and complaints including those registered with the Missions should be sent to the 'Nodal Officer' in the office of Director General of Foreign Trade, Udyog Bhavan, New Delhi who would take follow up action on these references. Details of such trade disputes and complaints sent to the 'Nodal Officer' however may continue to be incorporated in the reports being sent to the respective Territorial Divisions in the Ministry of Commerce. In many cases, such issues are referred to different agencies/Ministries in the Government of India without keeping the concerned Territorial Division in the Ministry of Commerce informed of the same and this affects the coordinating work of the Territorial Division in the Ministry of Commerce, who are expected to function as the nodal point for all matters relating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or General of Foreign Trade -Chairman 2. Bureau of Indian Standard -Member 3. Office of Agricultural Marketing Advisor -Member 4. Small Industries Service Institute -Member 5. Reserve Bank of India -Member 6. Officer-in-charge of Export Promotion attached to the office of Jt.DGFT -Member 7. Export Promotion Council/Commodity Board/Trade Association -Invitees 8. Export Inspection Agency-Member -Secretary. The 'Regional Committees' will examine, consider and decide quality complaints in accordance with the guidelines for the purpose, II. The 'Nodal Officer' or the Trade Disputes Cell in the office of Director General of Foreign Trade New Delhi will forward one copy of the complaint received to the 'Regional Committee' on Quality Complaints for speedy investigation, settlement and report and endorse a copy of this letter to the concerned Territorial Division in the Ministry of Commerce. III. The 'Regional Committees' will investigate and make all possible efforts to settle the dispute amicable within three months from the date of receipt of complaint. Where required, the 'Regional Committee' may take the assistance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... technical point of view, to assess whether there had been any technical failure for which a complaint had been received. Such technical failure may be with regard to technical deficiency of not meeting the standard, manufacturing/design defects, etc. To eliminate such failures and avoid such complaints in future proper technical advice may be extended by the Export Inspection Agency to the manufacturers. This authority will also examine the aspect whether the incidence of complaints have increased by way of circumvention of the law and/or change of procedures and suggest remedial measures. This would enable stricter enforcement of the statutes to upgrade the quality and thereby image of country's export. A report in this regard would be sent to the 'Nodal Officer' in the office of the Director General of Foreign Trade and also to the concerned Division of Ministry of Commerce. IX. The 'Regional Committee' will also send a consolidated quarterly report in respect of all cases referred to it with details of action taken to the Trade Disputes Cell in the office of Director General of Foreign Trade. COMPLAINTS OTHER THAN QUALITY COMPLAINTS AGAINST REGISTERED EX ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in the Ministry of Commerce. (viii) In cases where there is no arbitration clause or firms do not want arbitration and the sum involved is not significant and even on the recommendation of the Complaint Panel/Committee of/export promotion council/Commodity board, it has not been possible to resolve the mater or to take any action against the erring exporter, such cases will be reported to the 'Nodal Officer' for taking further necessary action as recommended by the "Complaint Panel/Committee etc. (ix) The 'Nodal Officer' will consider such cases reported by the 'Complaint Panel/Committees' and after due examination and investigation and after exhausting reconciliation efforts take action to de-register/debar the defaulting exporters by issue of show cause notice/hearing etc. and/or take such action as necessary, as per rules & regulation in force including in appropriate cases legal action, depending upon the gravity of offence. (x) The Export Promotion Council /Commodity Boards will send a consolidated quarterly report in respect of all cases referred to them with details of action taken to the Trade Disputes Cell in the office of Director Ge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ettlement. The Missions shall keep the 'Nodal Officer' informed of the action taken on such reference with an endorsement directly to such complainants and respective EPCs/CBs for any follow-up action such as publication of the names of such defaulting Importers/Exporters in their journal by way of information/warning to all concerned Exporter and Importer firms. A data base of such cases shall also be maintained in the Trade Disputes Cell in the office of Director General of Foreign Trade, Udyog Bhavan, New Delhi. ANNEXURE-I PROFORMA FOR INVESTIGATION OF QUALITY COMPLAINTS (To be filled in by the complainants) 1. Complaint lodged by (Name & full Address) 2. Against whom (Name & full Address) 3. 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 inspec ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
