Skip to content

CA Final · Indirect Tax Laws · Foreign Trade Policy

Meera Overseas Ltd submitted a document to DGFT knowing it was forged, in respect of goods valued at ₹2,00,000. Separately, goods in another matter were found to be imported in contravention of the Policy and are liable to confiscation. Which statement is correct under Section 11?

For submitting a forged document, the penalty is at least ₹10,000 or up to five times the goods' value, whichever is more. Goods contravening the Policy are liable to confiscation and may be released on paying redemption charges equivalent to their market value.

  1. AOnly the document is penalised, and goods can never be confiscated
  2. BA penalty of not less than ₹10,000 or up to five times the goods' value, whichever is more, applies for the forged document, and confiscated goods may be released on payment of redemption charges equivalent to their market valueCorrect
  3. CThe penalty for the forged document is fixed at ₹10,000 regardless of value
  4. DConfiscated goods must be released free of charge if the importer admits the contravention

Explanation

Section 11(3) imposes a penalty of not less than ₹10,000 or up to five times the value, whichever is more, for forged or false documents. Under Section 11(8) and (9), goods are liable to confiscation and may be released on payment of redemption charges equal to market value. The fixed ₹10,000 option ignores the value-based limb.

Did you get it right without looking?

One question tells you little. A timed set on Foreign Trade Policy shows your real accuracy, how long you take and where you lose marks.

Practise Foreign Trade PolicyFree diagnostic mock

More Foreign Trade Policy questions