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(viii) The payment of customs duty and customs clearance comes into operation only in such cases where the carrier of the goods (aircrafts, ships and surface transport) takes out or bring in the goods and liable to file what is known as customs manifest or bill of entry.

(ix) Taking into all facts as stated in above paras, it was submitted that FTRDA, 1992 and policy framed under E & IP 92-97 govern the goods imported and exported out of India. The import export foreign exchange is governed by FERA and RBI. The payments of customs duty and customs clearance are covered under Customs Act, 1962, etc. In the assessee's case, as the goods imported and exported without brining it into India, the question of filing of customs manifest or bill of entry, etc. does not arise and, therefore, the Customs Act, 1962 has no role to play. The FTRDA, 1992 and E & IP 92-97 and FERA and RBI guidelines only apply. The definitions under FTRDA, 1992 of import and export. Under Section 2(e) import and export means to bring into or taking out of India any goods by land, sea or air. Similarly, under E & IP 92-97, under Clause 7(16) means a person who exports or intend to export and holds an importer exporter code number. Under Rule 7(26), merchant exporter means a person engaged in trading activity and exporting or intending to export the goods. What is significant in the above definitions are that the definition under Section 2 of FTRDA, 1992, no doubt, specifies that bringing into or taking out of India of any goods amounts to import or export. This definition is intended to govern the physical import and export, which was also regulated by Foreign Trade (Regulation and Development) Act 1992. However, this definition will not apply to the merchanting trade exports as under the E & IP 92-97, the definition of importer, exporter, merchant exporter r/w Sections 154B and 154D provides that the goods dealt by merchanting trade (international trade) need not physically be imported into India and then re-exported out of India. Therefore, it was submitted that under the merchanting trade export, in view of the specific provisions contained in FTRDA, 1992 with E & IP 92-97, the goods exported under merchant trade export need not physically go out of Indian territory.