Skip to content

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

Customs officers find that a consignment of goods of Tanvi Exports is being exported in contravention of the foreign trade policy. Under the Foreign Trade (Development and Regulation) Act, 1992, what is the position on the goods?

The goods are liable to confiscation by the Adjudicating Authority, along with packages and conveyances. Under Section 11(8) and (9), they may be released on payment of redemption charges equivalent to their market value. A penalty does not replace confiscation, and the Act sets no fixed ten thousand rupee release fine.

  1. AThey are liable to confiscation by the Adjudicating Authority, and may be released on payment of redemption charges equal to their market valueCorrect
  2. BThey must be destroyed immediately without any option of release
  3. CThey can be released only on payment of a fine of ten thousand rupees
  4. DThey cannot be confiscated because only a penalty applies

Explanation

Section 11(8) makes goods, with their packages and conveyances, liable to confiscation by the Adjudicating Authority where a contravention has been, is being or is attempted. Under Section 11(9), they may be released on payment of redemption charges equivalent to market value. Penalty and confiscation operate together, so 'only a penalty' is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Foreign Trade Policy and Procedure shows your real accuracy, how long you take and where you lose marks.

Practise Foreign Trade Policy and ProcedureFree diagnostic mock

More Foreign Trade Policy and Procedure questions