Sections 16 and 17 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 16 lets the Central Government review an order of the Director General, and the Director General review an order of a subordinate officer, but no order can be changed to a person's disadvantage unless he was given a show-cause notice within two years and a hearing. Section 17 gives every authority that adjudicates, hears an appeal or reviews under the Act the powers of a civil court on five listed matters, the power to make interim orders and stay, and the power to correct clerical or arithmetical mistakes. Section 16 was substituted in 2010 and section 17 was amended in the same Act. This article explains both as per the Act as enacted in 1992 read with the 2010 Amendment Act.
Section 16: the Central Government may review a decision of the Director General, and the Director General a decision of a subordinate officer, "on its or his own motion or otherwise". A decision cannot be varied to anyone's prejudice unless he got a show-cause notice within two years of the decision and a reasonable opportunity to be heard. Section 17: the authorities have civil court powers, can make interim orders and stay a decision, and can correct mistakes, but not after two years if the correction prejudices a person.
Section 16: review
What the 1992 section said
In 1992 the section was headed "Revision". It allowed the Central Government and the Director General to call for the records of a proceeding in which a decision or order imposing a penalty or redemption charges or adjudicating confiscation had been made and against which no appeal had been preferred. The 2010 Amendment Act (section 18 of that Act) substituted a new section 16 headed "Review". The current section is the 2010 text. The 2010 Act was brought into force by notification; the date is not in the sources consulted. If you have received a review notice, a legal consultation can help you check the two-year period and prepare a reply.
The current section 16
Section 16 reads: "The Central Government, in the case of any decision or order made by the Director General, or the Director General in the case of any decision or order made by any officer subordinate to him, may on its or his own motion or otherwise, call for and examine the records of any proceeding, for the purpose of satisfying itself or himself, as the case may be, as to the correctness, legality or propriety of such decision or order and make such orders thereon as may be deemed fit".
| Reviewing authority | Whose decision it can review |
|---|---|
| The Central Government | A decision or order made by the Director General |
| The Director General | A decision or order made by an officer subordinate to him |
Points to note:
- Own motion or otherwise. The authority can act on its own or on someone's application or information.
- Purpose. To satisfy itself of the "correctness, legality or propriety" of the decision.
- Any proceeding. In 1992 the power covered only proceedings on penalty, redemption charges or confiscation where no appeal had been preferred. The substituted section does not carry those limits. It speaks of "any proceeding" and does not mention appeals. The section does not say whether a decision that has been through an appeal can be reviewed, and the reader should not assume either way.
- Orders it can make. "such orders thereon as may be deemed fit".
The proviso: two years and a hearing
"Provided that no decision or order shall be varied under this section so as to prejudicially affect any person unless such person—
(a) has, within a period of two years from the date of such decision or order, received a notice to showcause why such decision or order shall not be varied; and
(b) has been given a reasonable opportunity of making representation and, if he so desires, of being heard in his defence."
Both conditions must be met:
- A show-cause notice must be received within two years from the date of the decision or order. The words are "received", so the notice has to reach the person within that period.
- The person must be given a reasonable opportunity to make a representation and to be heard.
Example: Willow Traders (an invented firm) got an order from a subordinate officer that reduced a penalty. Eighteen months later, the Director General proposes to raise it. Willow must receive a show-cause notice within two years of the order and be heard before the order is varied against it.
For how review differs from an appeal, see our article on section 15, and for who the Adjudicating Authority is, sections 13 and 14.
The Handbook in the background
HBP 2023 para 11.13 (in the copy consulted), headed "General Power of Review", says the Director General of Foreign Trade may, on his own or otherwise, call for the records of a case pending with or decided by a subordinate officer, or an officer of an export promotion council or FIEO, and pass such orders as he deems fit. That is procedure under the Policy and not the Act; check the current Handbook.
Section 17: powers of the authorities
Section 17 is headed in the margin "Powers of Adjudicating and other Authorities". It applies to "every authority making any adjudication or hearing any appeal or exercising any powers of review under this Act". The 1992 text said "revision"; the 2010 Act directs that the word "Revision" be replaced by "Review" wherever it occurs in section 17, and the current sentence is read accordingly. If the printed consolidated text differs, follow the official text.
Section 17(1): civil court powers
Such an authority "shall have all the powers of a civil court under the Code of Civil Procedure, 1908, while trying a suit, in respect of the following matters":
- (a) summoning and enforcing the attendance of witnesses;
- (b) requiring the discovery and production of any document;
- (c) requisitioning any public record or copy thereof from any court or office;
- (d) receiving evidence on affidavits; and
- (e) issuing commissions for the examination of witnesses or documents.
Section 17(2): deemed civil court
Every such authority "shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973". The Code of Civil Procedure, 1908 and the Code of Criminal Procedure, 1973 are other laws and are not explained here; check the current law.
Section 17(3): interim orders and stay
Every such authority "shall have the power to make such orders of an interim nature as it may think fit and may also, for sufficient cause, order the stay of operation of any decision or order". Two things are said: interim orders as the authority thinks fit, and a stay "for sufficient cause". The section does not say what is "sufficient cause".
Section 17(4): correcting mistakes
"Clerical or arithmetical mistakes in any decision or order or errors arising therein from any accidental slip or omission may at any time be corrected by the authority by which the decision or order was made, either on its own motion or on the application of any of the parties".
The proviso limits this: "where any correction proposed to be made under this sub-section will have the effect of prejudicially affecting any person, no such correction shall be made except after giving to that person a reasonable opportunity of making a representation in the matter and no such correction shall be made after the expiry of two years from the date on which such decision or order was made."
| Kind of correction | Time and process |
|---|---|
| Correction that does not prejudice anyone | "at any time", on the authority's own motion or on a party's application |
| Correction that prejudices a person | Only after a reasonable opportunity to make a representation, and not after two years from the decision or order |
Need help with a review notice or a stay application?
If you have received a notice proposing to vary an order, or you need to ask for a stay or a correction, our legal consultation service can help you check the two-year period, prepare the representation and decide what to ask the authority. Later amendments to the Act, the Rules and the Policy should be checked.
Key takeaways
- Section 16 (substituted in 2010) lets the Central Government review the Director General's decisions, and the Director General review those of subordinate officers, on own motion or otherwise.
- No decision can be varied to a person's prejudice without a show-cause notice received within two years and a reasonable opportunity to be heard.
- Section 17 gives the authorities civil court powers on five matters, deems them civil courts for sections 345 and 346 of the Code of Criminal Procedure, 1973 and lets them make interim orders and order a stay for sufficient cause.
- Clerical and arithmetical mistakes can be corrected, but a correction that prejudices a person needs a hearing and cannot be made after two years.
Read next
- Section 15: appeal against adjudication orders
- Sections 13 and 14: Adjudicating Authority and notice before penalty
- Sections 18 and 18A: good faith action and other laws
- Limitation periods for suits and appeals
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.