Skip to content

CMA Final · Indirect Tax Laws and Practice · Export Promotion Schemes under Foreign Trade Policy

Goods being exported by Lakshmi Exports are found liable to confiscation by the Adjudicating Authority under Section 11(8) of the FT(D&R) Act, 1992. On what payment may the Adjudicating Authority release them under Section 11(9), subject to prescribed manner and conditions?

Release is on payment of redemption charges equivalent to the market value of the goods or conveyance, in the manner and on conditions prescribed. The five-times-value and Rs 10,000 figures relate to penalty under Section 11(2), not to redemption of confiscated goods.

  1. ARedemption charges equal to the market value of the goods or conveyanceCorrect
  2. BRedemption charges of five times the value of goods
  3. CA flat amount of Rs 10,000
  4. DRedemption charges equal to the FOB value less the penalty

Explanation

Section 11(9) allows release of confiscated goods or conveyance on payment of redemption charges equivalent to the market value of the goods or conveyance. Five times the value relates to the maximum penalty in 11(2), and Rs 10,000 is the minimum penalty, not redemption charges.

Did you get it right without looking?

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

Practise Export Promotion Schemes under Foreign Trade PolicyFree diagnostic mock

More Export Promotion Schemes under Foreign Trade Policy questions