 bill no 104 of l969 the foreign exchange regulation (amendment)~iii:~1969 a blllfurthe, to amend the foreign exchange regulation act, 1947 be it enacted by parliament in the twentieth year of the republic of india as follows:-1 this act may be called the foreign exchange regulation (amend- short ment) act, 1969 title 7 of 1941 2 in section 12 of the foreign exchange regulation act, 1947 (here- amend-s inafter leferred to as the principal act) for sub-section (1), the follow- ment 01 ing sub-section shall be substituted, namely: _ section 12 "(1) the central government may by notification in the official gazette, prohibit the taking or sending out by land, sea or air 10 (hereafter in this section referred to as export) of all goods or of any goods or class of goods specified in the notification from india directly or indirectly to any place so specified unless the exporter furnishes to the prescribed authority a declaration in the prescribed form supported by such evidence as may be prescribed or 80 specified and true in ,all material particulars which, among others, iihall include the amount representing-(i) the full export value of the goods; or (ii) if the full export value of the goods is not ascertainable at 5 the time of export, the value which the exporter, having regatd to the prevailing market conditions, expects to receive on the sale of the goods in the course of international trade, and affirms in the said declaration that the full export value of the goods (whether ascertainable at the time of export or not) haa been, 10 or will within the prescribed period be, paid in the prescribed manner" amendmentof section 23a 3 in section 23a of the principal act, for the words, brackets and figures "the restrictions imposed by sub-sections (1) and (2) of section 8", the words, brackets and figures "the restrictions imposed by or under 15 sub-sections (1) and (2) of section 8" shall be substituted 4 (1) the foreign exchange regulation (amendment) ordinance, 1969 is hereby repealed repeal and savini· (2) notwithstanding such repeal, anything done or any action taken under the principal act, as amended by the said ordinance, shall be 20 deemed to have been done or taken under the principal act as amended by this act as if this act had come into force on the 13th day of november, 1969 sub-section (1) of section 12 of the foreign exchange re~lation ac~ ~947 empowers the central government to issue a notification pro-~bitrnr tlie export from india of any goods or class of goods specified in the notification to any place unless a declaratioll ~orf:ed by !iuth e~dence as ~ay be prescribed, is furnished by the exporter to the pres crlbed authorities that the amount representing the full export value of the g~ods has been or will, within the prescribed period, be paid in the prescribed manner accordingly, some notifications have been issued imposing a general prohibition with certain exceptions the requisite rules relating to the declarations have also been framed section 23a of the act provides that a'ny restriction imposed by sub-section (1) of section 12 ot the act, shall be deemed to have been imposed unde~ sec t10n 11 of the customs act, 1962 and all the provisions of the said customs act shall have effect accordingly on this basis, officers of customs were detaining goods intended for export wherein the full export value had not been correctly stated in the declaration 2 all along the view held by officers of customs supported by certain decisions of the high courts has been that the act and the notification imposed upon the exporter an obugation to specify in the declara  tion the true full export value of the goods and that in the event of his fallure to make a true declaration, the prohibition of export imposed by the notiftcation would operate it was thus assumed that if the exporter tan to make a correct declaration of the full export value, it was open to the customs authorities to seize the goods in respect of which such an erroneous declaration has been made and to take steps for the conflscation of the goods and the imposition of a penalty 3 however, in the case of union of india vs rai bahadut shree ram durga prasad (private) limited, the supreme court held that the declaration required by section 12(1) of the act is only to the effect that the amount representing the full export value of the goods has been or will, within the prescribed period, be paid in the prescribed manner in the case of misdeclaration of the full export value, it was held by the court that it was not open to the customs authorities to take any adion against the goods, though the exporter would be liable to be proceeded against under section 23 of the act for making a false declaration an attempt was made to persuade the supreme court to reconsider this decision but in a recent judgment in the case of mcleod and co vb union of india the cdurt declined to reconsider its earlier decision in this regard 4 with a view to preventing under-invoicing, it was necessary to amend the act so ae to restore to the customs authorities powers which they were believed to possess prior to the aforesaid judgment of the supreme court as parliament was not in session, and the checking of under-tnvoieing called for immediate action, the foreign exchange regu· lation (amendment) ordinance, 1969 (9 of 1969) was promulgated by the president on the 13th november, 1969, amending sectiojll 12 and 23a of the foreign exchange regulation act, 1947 auitably ~ th~ present bill seeks to replace the aforesaid ordinance by an aet of parliament new delluj p c semi the 26th november, 1969 clause 2 of the bill seeks to substitute a new sub-section for subsection (1) of section 12 of the foreign exchange regulation act, 1947, and empowers the central government to regulate, by notification, the export of all goods or of any 'goods or class of goods to be specified in the notification the goods will be specified with due regard to the objects (if the act, in particular, the regulation of dealings in foreign exchange the declaration which the exporter has to furnish under the sub-section has to be in the form prescribed by the rules made under the act which will be laid before parliament the delegation of legislative pclwer 11 thus of a normal character payment for exported goods extracts from the foreign exchange rzovlation 4c!', 1947 ('1 or 1947) - - - - - 12 (1) the central government ~ay, by notificaiion in tit oftlclal gazette, prohibit the taking or lending out by land, sea or ,air (hereafter in this section referred to i6 export) of any 100m 'or ela ofco<jds specified in the notification from india directly qi" indirectly to any place so specified unless a declaration supported by such evidence as may be prescribed or $0 specified,'is furnished ~ the eacporter -tathepresc:ribed authority that the amount representing the full export~ val~'t ~e ~ has been, or will within the prescribed period be, paid in the prescribed manner  - - - - - application ot customs act, 1962 23a without prejudice to the provisions of section 23 or to any other provision contained in this act, the restrictions imposed by sub-sections (1) and (2) of section 8, sub-section (1) of section 12 and clause (4) of sub-section (1) of section 13 shali be deemed to have been imposed under section 11 of the customs act, 1962, and all the provisions of that act shall have effect accordingly - - - - -  a billfunher to amend the foreign exchange regulation act, 1947 (shrl prakashchand b sethi, minister of state in the mi1iistry of plnance) 