Foreign Exchange Management Act (FEMA) is an Act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India. This was enacted in the year 1999 after repealing the Foreign Exchange Regulation Act.

Remittance of Import and Export consignments is governed through FEMA. Further there are shipments where several transactions are handled on FOC basis. Conditionalities of such transactions are governed through statute.

In respect of the following the powers of enforcement under FEMA have been conferred on the customs/excise officers,
(a) Offences under section 6(3)(g) of FEMA. This section relates to restrictions/prohibitions on export/import or holding of currency or currency notes
(b) Offences under Section 7(1)(a) of FEMA. This section deals with furnishing of export value of goods exported. MF(DR) order no SO 1156(E) dated 5.1.2001