Sections 1 and 20 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 1 gives the Act its name and fixes when each part started to apply. Section 20 repeals the Imports and Exports (Control) Act, 1947 and the 1992 Ordinance, and saves what was done under them. Together they explain how India moved from the old control law to the present foreign trade law, as per the Act as enacted in 1992 read with the 2010 Amendment Act.
The Act may be cited as the Foreign Trade (Development and Regulation) Act, 1992. Sections 11 to 14 came into force at once; every other provision is deemed to have come into force on 19 June 1992. Section 20 repeals the Imports and Exports (Control) Act, 1947 and the Foreign Trade (Development and Regulation) Ordinance, 1992, but keeps alive past acts, rights, liabilities, penalties and pending proceedings under the 1947 Act. Neither section was changed by the 2010 Amendment Act.
What the Act says it is for
The long title describes the Act as one "to provide for the development and regulation of foreign trade by facilitating imports into, and augmenting exports from, India and for matters connected therewith or incidental thereto". Two verbs matter: the Act both develops trade (it speaks of facilitating imports and augmenting exports) and regulates it. That is why the same statute holds the power to make a foreign trade policy, the Importer-exporter Code, licences and also penalties and confiscation.
The Act was passed as Act 22 of 1992. The gazette shows that the President gave assent on 7 August 1992 and that it was published on 10 August 1992.
Section 1: short title and commencement
Section 1 has two sub-sections.
Section 1(1) says the Act may be called the Foreign Trade (Development and Regulation) Act, 1992. Trade usage shortens this to the FTDR Act or the FT(D&R) Act.
Section 1(2) splits the commencement in two:
- sections 11 to 14 "shall come into force at once"; and
- "the remaining provisions of this Act shall be deemed to have come into force on the 19th day of June, 1992".
Sections 11 to 14 deal with contravention and penalty, other punishments, the Adjudicating Authority and the notice before a penalty. The text does not name a calendar date for "at once". For everything else the Act looks backward: the deemed date is 19 June 1992, earlier than the date of assent.
| Provision | Date or effect printed in the Act |
|---|---|
| Sections 11, 12, 13 and 14 | Come into force at once |
| All other provisions | Deemed to have come into force on 19 June 1992 |
The split is worth noticing when an old file is read: the Act itself treats the penalty and adjudication sections differently from the rest, so a lawyer reading an early matter should check which provision is in play.
Need advice on an old matter that may turn on these dates? A short legal consultation can place the facts against the right provision.
The 2010 Amendment Act and its own commencement
The Foreign Trade (Development and Regulation) Amendment Act, 2010 (Act 25 of 2010) received assent on 19 August 2010. Its section 1(2) says it comes into force on such date as the Central Government appoints by notification in the Official Gazette, and the proviso allows different dates for different provisions. The Act was brought into force by notification; the date is not in the sources consulted, so no date is given here.
The 2010 Act did not touch section 1 or section 20. It did insert nine new sections (9A, 11A, 11B, 14A, 14B, 14C, 14D, 14E and 18A), two new chapters and changed headings.
Section 20: repeal and savings
Section 20(1) repeals two things: the Imports and Exports (Control) Act, 1947 and the Foreign Trade (Development and Regulation) Ordinance, 1992 (Ordinance 11 of 1992 in the gazette's marginal note). For the position of the Orders made under the 1947 Act, see section 4, explained in our article on sections 3 and 4.
Section 20(2) protects the 1947 Act's past. The repeal does not affect:
- the previous operation of the repealed Act or anything duly done or suffered under it;
- any right, privilege, obligation or liability acquired, accrued or incurred under it;
- any penalty, confiscation or punishment incurred for a contravention under it; or
- any proceeding or remedy for such a right, liability, penalty, confiscation or punishment.
Any such proceeding or remedy "may be instituted, continued or enforced", and any such penalty, confiscation or punishment may be imposed "as if that Act had not been repealed".
Section 20(3) deals with the Ordinance: anything done or any action taken under it is deemed to have been done or taken under the corresponding provisions of this Act, despite the Ordinance's repeal.
The Imports and Exports (Control) Act, 1947 is another Act: readers should check the current law for its corresponding provisions before relying on this summary for an old case.
Example
Meera Exports, a trading firm in Kanpur, was served years ago with a notice for a contravention that occurred while the 1947 Act was in force. Section 20(2) means the firm cannot argue that the repeal wiped out the case: the proceeding may be continued and a penalty or confiscation that was incurred may still be imposed, as if the 1947 Act had not been repealed.
How the Act is laid out today
Reading the Act as amended, the chapters now run as follows. The definitions in section 2 are explained in our article on section 2.
| Chapter | Sections | Subject |
|---|---|---|
| I Preliminary | 1, 2 | Short title, commencement and definitions |
| II Power of Central Government to make Orders and announce foreign trade policy | 3 to 6 | Orders, existing Orders, the policy and the Director General |
| III Importer-exporter Code Number and Licence | 7 to 9 | The Code, suspension of the Code, licence |
| IIIA Quantitative Restrictions | 9A | Restrictions on imports causing serious injury (inserted 2010) |
| IV Search, Seizure, Penalty and Confiscation | 10 to 14 | Search, contravention, penalty, adjudication, notice |
| IVA Controls on export of specified goods, services and technology | 14A to 14E | Weapons-related controls (inserted 2010) |
| V Appeal and Review | 15 to 17 | Appeal, review, powers of authorities |
| VI Miscellaneous | 18, 18A, 19, 20 | Good faith, other laws, rules, repeal |
Chapter II's heading was "Export and Import Policy" in 1992; the 2010 Act changed it to "Foreign Trade Policy". Chapter V's heading changed from "Revision" to "Review".
Need help with an old or current foreign trade matter?
If a notice, a licence dispute or an old proceeding turns on which provision applied when, talk to us through our legal consultation service. Later amendments to the Act, the Rules and the Foreign Trade Policy should also be checked before any step is taken.
Key takeaways
- The Act is cited as the Foreign Trade (Development and Regulation) Act, 1992 (Act 22 of 1992).
- Sections 11 to 14 started at once; all other provisions are deemed in force from 19 June 1992.
- Section 20 repeals the 1947 Act and the 1992 Ordinance but saves past acts, rights, liabilities, penalties and proceedings.
- Neither section 1 nor section 20 was changed in 2010; the 2010 Act has its own commencement by notification and the date is not in the sources consulted.
- The Act now has eight chapters including IIIA and IVA.
Read next
- Section 2: definitions of import, export, licence and Importer-exporter Code
- Sections 3 and 4: power to prohibit, restrict and regulate
- Section 19: power to make rules
- How to start an import export business in India
Disclaimer: Based on the Foreign Trade (Development and Regulation) Act, 1992 as enacted read with the Amendment Act of 2010, and on the Foreign Trade (Regulation) Rules, 1993 as notified read with the Amendment Rules of 2015, as consulted on 2 October 2026. Later amendments, the current Foreign Trade Policy and the Handbook of Procedures should be checked. This article is general information, not legal advice; check the official text before acting.