Sections 18 and 18A 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 18 protects the Government and its officers: no order made under the Act can be called in question in any court, and no suit, prosecution or other legal proceeding lies against any person for anything done or intended to be done in good faith under the Act. Section 18A, inserted in 2010, says the Act's provisions are in addition to, and not in derogation of, the provisions of any other law. Section 18 is as enacted in 1992 and was not changed in 2010. This article explains both as per the Act as enacted in 1992 read with the 2010 Amendment Act.
Section 18: an order made (or deemed to have been made) under the Act cannot be called in question in any court, and no suit, prosecution or other legal proceeding lies for anything done or intended to be done in good faith under the Act. Section 18A: the Act is in addition to, and not in derogation of, any other law in force. So a person can face the Foreign Trade Act and another law for the same facts.
Section 18: the protection clause
The marginal note to section 18 reads "Protection of action taken in good faith". The section reads: "No order made or deemed to have been made under this Act shall be called in question in any court, and no suit, prosecution or other legal proceeding shall lie against any person for anything in good faith done or intended to be done under this Act or any order made or deemed to have been made thereunder."
It has two limbs.
| Limb | What it bars |
|---|---|
| First | Calling in question, in any court, an order made or deemed to have been made under the Act |
| Second | A suit, prosecution or other legal proceeding against any person for anything in good faith done or intended to be done under the Act or an order under it |
First limb: orders not to be called in question
The words are "no order ... shall be called in question in any court". They cover an order "made or deemed to have been made under this Act". Where does the Act use "deemed"? Two places show it:
- Section 4 continues Orders made under the Imports and Exports (Control) Act, 1947 and in force before the Act began, so far as they are not inconsistent with the Act, and says they "shall be deemed to have been made under this Act".
- Section 20(3) says anything done or any action taken under the Foreign Trade (Development and Regulation) Ordinance, 1992 "shall be deemed to have been done or taken under the corresponding provisions of this Act".
See our article on sections 1 and 20 and the article on sections 3 and 4.
A legal consultation can help you decide where to go and when. The Act itself sets out routes for challenging an order: the appeal under section 15, review under section 16 and, for licences, section 9(5). Section 18 does not say that an order can never be questioned; it says it shall not be "called in question in any court". The first thing to use is the route the Act itself gives. Whether any other remedy remains open in a given case is a point of law that depends on the current law and the facts, and the sources consulted do not answer it.
Second limb: good faith action
The second limb protects any person for "anything in good faith done or intended to be done". Note three features:
- "Any person." It is not limited to the Director General. It covers anyone who acts under the Act or an order made under it, for example an officer who exercises a power of seizure or a person who follows an order.
- "Done or intended to be done." Both an act and an intended act are covered.
- "In good faith." The protection depends on good faith. The Act does not define good faith, and the section says nothing about what happens when good faith is absent. The meaning is not stated in the sources consulted.
The protection extends to "a suit, prosecution or other legal proceeding". That is wide. It covers a civil suit, a criminal prosecution and any other proceeding.
Section 18A: the Act is in addition to other laws
Section 18A was inserted by section 20 of the 2010 Amendment Act. It reads: "The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force." The margin calls it "Application of other laws not barred". The 2010 Act was brought into force by notification; the date is not in the sources consulted.
What it means in plain terms
The Foreign Trade Act does not displace other laws. The words "in addition to" mean the other laws also apply. The words "not in derogation of" mean the Foreign Trade Act does not cut down the other laws. So an act that breaks the Foreign Trade Act may also break another law and be dealt with under it.
This idea appears in other parts of the Act:
| Provision | What it says on other laws |
|---|---|
| Section 3(3) | All goods to which an Order under section 3(2) applies are deemed to be goods the import or export of which is prohibited under section 11 of the Customs Act, 1962, and that Act has effect accordingly (as printed; check current law) |
| Section 12 | No penalty or confiscation under the Act prevents any other punishment under any other law |
| Section 14E | Penalty and imprisonment for Chapter IVA contraventions are under the 2005 weapons of mass destruction law |
| Section 18A | The Act is in addition to the provisions of any other law |
See our article on sections 11A, 11B and 12. The other laws named in the Act (the Customs Act, 1962, the Code of Criminal Procedure, 1973, the Code of Civil Procedure, 1908, the Central Excise Act, 1944, the Special Economic Zones Act, 2005 and others) are separate laws; the reader should check the current law for each.
How sections 18 and 18A work together
Section 18 limits the courts' power over orders made under the Foreign Trade Act. Section 18A says the Foreign Trade Act does not shut out other laws. They do not conflict. Section 18 is about challenging the orders and suing those who act in good faith; section 18A is about which laws apply to the same facts.
Practical consequences for an exporter or importer:
- Plan for more than one proceeding. A single shipment can raise a question under the Foreign Trade Act and another under customs law.
- Keep your records together. The same invoice, bill and contract may be needed in each place.
- Answer each notice in the time it gives. The period in one proceeding does not extend the period in another.
- For customs side, see our general guides on confiscation under the Customs Act and customs penalties. They explain the Customs Act, not this Act.
Example: Silver Fern Exports (an invented firm) ships goods against a prohibition and receives a notice under the Foreign Trade Act and a separate notice from customs. Section 18A means one does not displace the other. Silver Fern answers each in the time given, and a lawyer checks how a result in one affects the other under current law.
Need help with parallel proceedings?
If one shipment has led to notices under the Foreign Trade Act and another law, our legal consultation service can help you list the proceedings, the periods and the order in which to answer. Later amendments to the Act, the Rules and the Policy should be checked.
Key takeaways
- Section 18 bars calling an order made or deemed to have been made under the Act in question in any court.
- It also bars any suit, prosecution or other legal proceeding for anything done or intended to be done in good faith under the Act.
- The Act sets out its own routes of appeal and review; use them first.
- Section 18A, inserted in 2010, makes the Act additional to, and not in derogation of, any other law in force.
- Section 12 and section 14E point the same way: other laws can apply to the same facts.
- Section 18 was not changed in 2010.
Read next
- Section 15: appeal against adjudication orders
- Sections 16 and 17: review and powers of the authorities
- Sections 11A, 11B and 12: penalties, Settlement Commission and other punishments
- Introduction to the Customs Act, 1962
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.