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

Kaveri Traders, an importer, fails to pay a penalty imposed under the FTDR Act, 1992. Which consequence regarding its Importer-Exporter Code Number is expressly provided?

The Adjudicating Authority may suspend the Importer-Exporter Code Number of a person who fails to pay a penalty, and the suspension lasts until the penalty is paid or recovered. It is not an automatic or permanent cancellation.

  1. AThe Adjudicating Authority may suspend the IEC till the penalty is paid or recoveredCorrect
  2. BThe IEC is automatically cancelled forever
  3. CThe Central Government must replace it with a new IEC
  4. DThe IEC can be suspended only by a civil court

Explanation

Section 11(7) says that, without prejudice to other provisions, the IEC of a person who fails to pay a penalty may be suspended by the Adjudicating Authority till the penalty is paid or recovered. It is a suspension, not permanent cancellation, and a civil court is not the authority.

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