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

Goods being imported by Sagar Overseas are found to be in contravention of the foreign trade policy. The Adjudicating Authority confiscates them and later permits release. Under the FTDR Act, 1992, on what payment may the goods be released?

Confiscated goods or conveyances may be released by the Adjudicating Authority, in the prescribed manner and on prescribed conditions, on payment of redemption charges equivalent to the market value of the goods or conveyance. The five-times figure belongs to the penalty limit, not redemption.

  1. ARedemption charges equivalent to the market value of the goodsCorrect
  2. BRedemption charges equal to five times the market value
  3. CA fee of Rs 10,000 only
  4. DRedemption charges equal to half the market value

Explanation

Section 11(8) makes the goods, packaging and conveyances liable to confiscation, and section 11(9) allows release on payment of redemption charges equivalent to the market value of the goods or conveyance. The five-times figure is borrowed from the penalty limit and is wrong here. Fixed fee and half-value options are invented.

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