Part XIII: Trade, Commerce, and Intercourse

Article 307: Appointment of Authority for Trade and Commerce

Original Article:

Parliament may by law appoint such authority as it considers appropriate for carrying out the purposes of Articles 301 to 304, and confer on the authority so appointed such powers and such duties as it thinks necessary.

Explanation:

Article 307 empowers the Indian Parliament to appoint an authority to oversee and implement the objectives outlined in Articles 301 to 304. This authority ensures smooth trade and commerce across state boundaries and addresses any issues related to restrictive trade practices.

Purpose and Role of the Authority:

The authority appointed under Article 307 can play a pivotal role in:

• Resolving disputes between states related to trade and commerce.
• Enforcing uniform trade policies to ensure compliance with Articles 301 to 304.
• Providing regulatory oversight to prevent discriminatory practices or restrictions on interstate commerce.

Real-Life Example:

The Central Board of Indirect Taxes and Customs (CBIC) serves as a statutory authority overseeing import-export regulations and interstate trade issues. This aligns with the intent of Article 307 to facilitate and regulate trade across state and national borders.

Legislative History:

Article 307 was introduced to address the challenges of maintaining free and fair trade across a diverse and federated Indian economy. The framers recognized the potential for trade disputes and barriers and incorporated this provision to ensure effective implementation of trade freedom.

Historical Significance:

Before independence, India experienced significant trade barriers between provinces, which hampered economic unity. Article 307 marked a progressive step towards rectifying these issues by centralizing trade oversight.