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CS Executive · Economic, Commercial and Intellectual Property Laws · Foreign Trade Policy and Procedure

Under the Foreign Trade (Development and Regulation) Act, 1992, what is the role of the Director General of Foreign Trade (DGFT) in relation to the foreign trade policy?

The Director General of Foreign Trade advises the Central Government in formulating the foreign trade policy and is responsible for carrying that policy out. The power to formulate, announce and amend the policy by notification rests with the Central Government, not the Director General.

  1. AAdvises the Central Government in formulating the policy and is responsible for carrying it outCorrect
  2. BFormulates and announces the policy by notification without consulting the Central Government
  3. COnly adjudicates disputes on the policy and has no role in implementing it
  4. DAmends the policy on his own authority whenever exporters request a change

Explanation

Section 6(2) says the Director General advises the Central Government in formulating the foreign trade policy and is responsible for carrying it out. Formulating and announcing the policy by notification is the Central Government's power under section 5, so the second option is wrong.

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