Page 548 - MANUAL OF SOP

QUANTITATIVE RESTRICTION INVESTIGATIONS CHAPTER 22

LEGAL PROVISIONS

22.1. Article XI of the GATT prohibits quantitative restrictions on
the importation or exportation of any product, by stipulating that “no
prohibition or restrictions other than duties and taxes or other charges
shall be instituted or maintained by any member…”. The quantitative
restrictions are considered to have greater impact on trade than tariffs and
hence, their prohibition is one of the fundamental principles of the GATT.
However, GATT permits quantitative restrictions under certain conditions.
If a quantitative restriction is used, such a measure shall not reduce the
quantity of imports below the level of a recent period which shall be the
average of imports in the last three representative years for which statistics
are available, unless clear justification is given that a different level is
necessary to prevent or remedy serious injury. Members should choose
measures most suitable for the achievement of these objectives.

22.2. In India, the provisions of Quantitative restrictions are provided in
Foreign Trade (Development and Regulation) Act, 1992, introduced vide
amendment in 2010. The relevant provisions of Foreign Trade (Development
and Regulation) Act, 1992 are as follows:

CHAPTER IIIA :Quantitative Restrictions:

Power of Central Government to impose quantitative restrictions

9A. (1) If the Central Government, after conducting such enquiry as it
deems fit, is satisfied that any goods are imported into India in
such increased quantities and under such conditions as to cause
or threaten to cause serious injury to domestic industry, it may,
by notification in the Official Gazette, impose such quantitative
restrictions on the import of such goods as it may deem fit:

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