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Sections 14A and 14B of the Foreign Trade (Development and Regulation) Act, 1992: controls on export of specified goods, services and technology

Chapter IVA was added in 2010. Section 14A applies the 2005 Act to exports, transfers, re-transfers, goods brought in transit, trans-shipment and brokering of specified goods...

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Last updated: October 2026Verified against: Government sources

Sections 14A and 14B open Chapter IVA of the Act. They say that the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 applies to exports, transfers, re-transfers, transit, trans-shipment and brokering of "specified" goods, technology or services, and that notified items cannot move except in accordance with the law. Both sections were inserted by the 2010 Amendment Act; they did not exist in the Act as enacted in 1992. This article explains them as per the Act as enacted in 1992 read with the 2010 Amendment Act.

Where these sections sit

The 2010 Amendment Act inserted, after Chapter IV, a new Chapter headed "Controls on export of specified goods, services and technology". It runs from section 14A to section 14E. This article covers the first two sections. The remaining three, the catch-all control, the suspension of a licence and the offences, are in our article on sections 14C to 14E.

The 2010 Act was brought into force by notification; the date is not in the sources consulted.

What "specified goods or services or technology" means

Section 2(l), inserted in 2010, defines the phrase that runs through the whole Chapter. Its text is explained in our article on the definitions of services, technology and specified goods, and the reader should start there. In short, the Chapter applies only to items that fall within that definition and that the Central Government has notified. It does not apply to all exports. Where an item does fall under export controls, an exporter often needs a restricted-items licence or authorisation under the Policy before shipping.

Section 14A: the 2005 Act applies

Section 14A has three sub-sections.

Sub-section (1). It reads: "In regard to controls on export of specified goods, services and technology referred to in this Chapter, the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 shall apply to exports, transfers, re-transfers, brought in transit, trans-shipment of, and brokering in specified goods, technology or services."

Note the list of activities. It goes beyond a simple shipment out of India:

Activity namedPlain meaning
ExportsTaking the item out of India
TransfersPassing the item or its technology to another person
Re-transfersA further transfer by the first recipient
Brought in transitGoods that pass through India without being meant for India
Trans-shipmentMoving goods from one conveyance to another on the way
BrokeringArranging a deal in the item, even where the broker does not handle the goods

The plain meanings above are given to explain the words; the Act itself does not define them in this section.

Sub-section (2). All terms, expressions or provisions of the 2005 Act "shall apply to the specified goods, services or technology with such exceptions, modifications and adaptations as may be specified by the Central Government by notification in the Official Gazette". So the 2005 Act is applied, but the Central Government can adjust it for these items by notification. No such notification is in the sources consulted.

Sub-section (3). The Central Government may, by notification, direct that any provision of the Chapter "(a) shall not apply to any goods, services or technologies, or (b) shall apply to any goods, services or technologies with such exceptions, modifications and adaptations as may be specified in the notification." This is a power both to switch the Chapter off for an item and to apply it in a changed form.

Section 14B: transfer controls

Sub-section (1). The Central Government may, by notification in the Official Gazette, "make rules in conformity with the provisions of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 for, or, in connection with, the imposition of controls in relation to transfer of specified goods, services or technology". Two points follow. The rules are made by notification, and they must be in conformity with the 2005 Act; they cannot go against it.

Sub-section (2). It reads: "No goods, services or technology notified under this Chapter shall be exported, transferred, re-transferred, brought in transit or transshipped except in accordance with the provisions of this Act, the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 or any other relevant Act."

This is the working prohibition of the Chapter. It applies to goods, services or technology that have been "notified under this Chapter". An item that is not notified is outside sub-section (2). The movement is permitted only "in accordance with" this Act, the 2005 Act or any other relevant Act. The Foreign Trade Act does not list the "other relevant Act".

Section 14B(2) does not use the word "brokering" which appears in section 14A(1). The two lists are printed as they are; the reader should not assume that one is meant to match the other.

Other laws: check the current position

The 2005 Act is another law. Its controls, definitions, penalty and the term of imprisonment are not set out in the Foreign Trade Act and are not in the sources consulted, so none is stated here. The reader should check the current text of that Act and of any notification under sections 14A and 14B.

The Policy in the background

The Foreign Trade Policy 2023, Chapter 10, para 10.01 (in the copy consulted), says these provisions "have been incorporated in Chapter IVA of Foreign Trade (Development & Regulation) Act, 1992, as amended in 2010". Para 10.02 (in the copy consulted) states that export of dual-use items is regulated and is either prohibited or permitted under an authorisation unless specifically exempted. How that works in practice is a matter for the Policy and the Handbook of Procedures. See our guide on SCOMET export controls and the catch-all provision. The Policy can change, so check the current version.

Practical points for an exporter

  • Before you ship, or before you pass technical data to a buyer abroad, check whether the item is one of the notified specified goods, services or technology. An authorisation may be needed where the Policy so requires.
  • Remember that "transfer" and "re-transfer" are named. A sale to a buyer in one country with a plan to pass the item on to another is within the words of section 14A(1).
  • If you act as an agent or middleman, section 14A(1) names "brokering".

Example: Kestrel Instruments (an invented firm) makes a measuring device and receives an enquiry from a foreign buyer. Kestrel checks whether the device is within the specified goods, notes the end use stated by the buyer and applies for the authorisation the Policy requires before it ships. Where the device is notified, section 14B(2) bars the export except in accordance with the law.

Need help with export controls on specified goods?

If you are not sure whether your product, software or technical data is among the specified items, or you need an authorisation before an export, our restricted items import-export licence service can help you check the position and prepare the application. Later amendments to the Act, the Rules and the Policy should be checked.

Key takeaways

  • Chapter IVA (sections 14A to 14E) was inserted in 2010.
  • Section 14A applies the 2005 weapons of mass destruction law to exports, transfers, re-transfers, transit, trans-shipment and brokering of specified goods, technology or services.
  • The Central Government can modify or switch off the Chapter for particular items by notification (14A(2) and (3)).
  • Section 14B(1) allows rules in conformity with the 2005 Act; section 14B(2) bars movement of notified items except in accordance with the law.
  • The penalty and imprisonment are under the 2005 Act; none is stated in the Foreign Trade Act.

Read next

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.

Quick recapKey facts & short answers

Key Facts About Sections 14A and 14B

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What is Chapter IVA of the FTDR Act?

A chapter inserted in 2010, with sections 14A to 14E, on controls on export of specified goods, services and technology.

Does section 14A apply to every export?

No. It applies to "specified goods, services or technology" referred to in the Chapter. Section 2(l) defines the phrase.

An investment from abroad is complete only when its reporting is.

— TaxClue Trade & FEMA Desk

Sections 14A and 14B: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

A chapter inserted in 2010, with sections 14A to 14E, on controls on export of specified goods, services and technology.

No. It applies to "specified goods, services or technology" referred to in the Chapter. Section 2(l) defines the phrase.

Exports, transfers, re-transfers, goods brought in transit, trans-shipment and brokering in specified goods, technology or services.

Yes. Under 14A(2) it can specify exceptions, modifications and adaptations for the 2005 Act, and under 14A(3) it can direct that provisions of the Chapter do not apply, or apply with changes, to named items.

It bars the export, transfer, re-transfer, transit or trans-shipment of goods, services or technology notified under the Chapter, except in accordance with the Act, the 2005 Act or any other relevant Act.

The Foreign Trade Act refers the penalty to the 2005 Act (section 14E). The figure is not stated in the Foreign Trade Act or in the sources consulted; check the current 2005 Act.