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

Kiran Traders failed to pay a penalty imposed under the Foreign Trade (Development and Regulation) Act, 1992. Efforts to deduct the amount from money owed to it and to recover it through customs officers failed. Which further step does section 11 allow?

When deduction and customs-based recovery fail, the Director General or an authorised officer may issue a certificate specifying the amount due and send it to the Collector of the district. The Collector then recovers the amount as if it were an arrear of land revenue.

  1. AThe Director General may send a certificate of the amount due to the Collector of the district, who recovers it as an arrear of land revenueCorrect
  2. BThe Director General may imprison the proprietor until the penalty is paid
  3. CThe Central Government must write off the penalty after one year
  4. DThe Collector may revise the penalty to five times the value of goods

Explanation

Under section 11(5)(d)(i), if recovery fails under clauses (a), (b) and (c), the Director General or an authorised officer may prepare a certificate and send it to the Collector, who recovers the sum as an arrear of land revenue. The Act gives no power to imprison or write off the penalty.

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