As per the FTP 2015-20 chapter 8, GOI has taken a step to ensure or to project a good image of the country abroad. Here a body has been created which solves the complaints or trade dispute between importer & exporter. It helps to create confidence in the business environment.

Following types of complaints may be considered:

  • Complaint received from the foreign buyer in respect of poor quality of the product supplied by the Indian exporter.
  • Complaint received from the Indian Importer in respect of poor quality of the product supplied by the foreign exporter.
  • Complaint of unethical dealing
    • Partial/short supply of goods
    • Supplying commodity other than the ones as agreed upon
    • Non-payment
    • Late delivery of product

Obligation on the part of Importer / Exporter:

  • Exporter & Importer both are liable to furnish authenticated details in shipping bill or bill of entry.
  • They have to mention the value, quality & description of goods.
  • Also, they have to mention quality & specification of the goods as per the terms of the contract done.
  • If any of the parties are violating the T&C of the contract, then the other party can take legal action.
  • Certain export commodities have to compulsorily go to quality control & pre-shipment inspection prior to export. If prior inspection not done then it is liable to penal action under the Export Quality Control & Inspection Act, 1963 as amended in 1984.

Mechanism for the handling of complaints/disputes:

To deal effectively with the quality complaints & trade disputes a committee has been created which is named as “Committee on Quality Complaints & Trade Disputes” (CQCTD). CQCTD is responsible for enquiring & investigating into all quality & trade-related complaints. It is supposed to act within three months of receipt of the complaint.

CQCTD is only supposed to act reconciliatory (restore the relation) & the aggrieved (feeling cheated) party, whether foreign buyer or the Indian importer, is free to take any legal action on the erring party.