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CS Executive · Economic, Commercial and Intellectual Property Laws · Foreign Trade Policy and Procedure

Anil Traders was penalised under the Foreign Trade (Development and Regulation) Act, 1992 but has not paid. Which of the following is a recovery or consequence NOT supported by Section 11?

The unsupported consequence is automatic permanent cancellation of the IEC on default. Section 11 only lets the Adjudicating Authority suspend the IEC until the penalty is paid or recovered, while recovery may also proceed through customs officers or the Collector as arrears of land revenue.

  1. AThe Director General may require customs officers to recover the amount as if payable under the Customs Act, 1962
  2. BThe Adjudicating Authority may suspend the IEC until the penalty is paid or recovered
  3. CThe Collector of the District may recover the sum as an arrear of land revenue on receiving a certificate
  4. DThe IEC is permanently cancelled automatically on the date of default, without any orderCorrect

Explanation

Section 11 allows deduction from money owing, recovery through customs as under the Customs Act, 1962, and recovery as arrear of land revenue via the Collector. For IEC, the Adjudicating Authority may suspend it till payment; there is no automatic permanent cancellation. The last option is therefore unsupported.

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