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

Kaveri Traders submits a document to the Director General while knowing that it is forged in a material particular. The goods concerned are worth Rs 4,00,000. Which statement correctly reflects the FTDR Act, 1992?

Using a document known to be forged, tampered with or materially false, when submitted to the Director General or an authorised officer, attracts a penalty of at least Rs 10,000 and up to five times the value of the goods, whichever is more. Actual export is not a precondition.

  1. AThe person is liable to a penalty of not less than Rs 10,000 or more than five times the value of the goods, whichever is moreCorrect
  2. BThe document is ignored unless the goods are actually exported
  3. COnly a warning may be issued for a first offence
  4. DThe penalty is limited to the value of the goods, which is Rs 4,00,000

Explanation

Section 11(3) penalises signing or using a document known or believed to be forged, tampered with or false in a material particular, with the same range of Rs 10,000 up to five times the value, whichever is more. Actual export is not required, and there is no warning-only rule. The cap is not the goods' value alone.

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