Legal Framework for Cross-Border Trade and Investment in India

Cross-Border Trade Regulations and Customs Compliance

Cross-border trade and investments in India are governed by the Foreign Trade Policy (FTP), customs laws, and FEMA regulations, under the supervision of the Directorate General of Foreign Trade (DGFT) and the RBI.

1. Import Export Code (IEC)

Every business importing or exporting goods or services must obtain an Import Export Code (IEC) from the DGFT. This is a mandatory registration required for customs clearance and international payments.

2. Customs Valuation and Tariffs

Goods imported into India are subject to customs duty under the Customs Act, 1962. Importers must declare the correct transaction value of the goods, which is subject to audit by customs authorities to prevent under-invoicing.

Dinesh Prasad Tiwari & Associates represents clients in customs disputes, anti-dumping investigations, and structuring cross-border trade transactions.