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

Meera Agro Ltd was penalised under the Foreign Trade (Development and Regulation) Act, 1992 and has not paid. Which of the following is a step the Act expressly permits to recover or enforce the unpaid penalty?

The Adjudicating Authority may suspend the company's Importer-exporter Code Number until the penalty is paid or recovered. Section 11(7) provides this, in addition to the recovery modes in Section 11(5). The Act contains no automatic waiver and no power to cancel company registration.

  1. ASuspension of its Importer-exporter Code Number by the Adjudicating Authority until the penalty is paid or recoveredCorrect
  2. BPermanent cancellation of its company registration by the Director General
  3. CArrest of its directors by the Collector without any process
  4. DAutomatic waiver of the penalty after thirty days

Explanation

Section 11(7) allows the Adjudicating Authority to suspend the IEC of a person who fails to pay a penalty, until it is paid or recovered. Section 11(5) also provides recovery modes such as deduction, detention or sale of goods, or recovery as arrears of land revenue. The Act has no company-registration cancellation, arrest by the Collector or automatic waiver.

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