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

Kaveri Traders imports goods worth ₹4,00,000 in a manner that contravenes the foreign trade policy in force. Applying Section 11(2) read with the policy, the penalty range is:

Under Section 11(2), contravening the foreign trade policy attracts a penalty of at least ₹10,000 and up to five times the value of the goods, whichever is more. For goods worth ₹4,00,000 the ceiling is ₹20,00,000.

  1. Anot less than ₹10,000 and not more than five times the value of the goods, whichever is more, i.e. up to ₹20,00,000 hereCorrect
  2. Ba fixed penalty of ₹10,000 only
  3. Cnot more than ₹4,00,000 in all cases
  4. Dnot less than five times the value of the goods, i.e. ₹20,00,000

Explanation

Section 11(2) provides a penalty of not less than ten thousand rupees and not more than five times the value of the goods, whichever is more. Five times ₹4,00,000 is ₹20,00,000, so the upper limit is ₹20,00,000. Option D wrongly treats five times the value as a minimum.

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