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

Mehta Exports Pvt Ltd, Surat, attempts an export in contravention of the foreign trade policy. The goods are valued at Rs 1,00,000. Under the FTDR Act, 1992, what is the penalty range for this contravention?

The penalty is not less than Rs 10,000 and not more than five times the value of the goods, services or technology involved, whichever is more. Attempting or abetting a contravening export or import attracts it, so Mehta Exports is liable even though the export was only attempted.

  1. ANot less than Rs 10,000 and not more than five times the value of the goods, whichever is moreCorrect
  2. BA fixed penalty of Rs 10,000 only
  3. CNot less than Rs 1,00,000 and not more than ten times the value of the goods
  4. DImprisonment only, with no monetary penalty

Explanation

Section 11(2) provides that a person who makes, abets or attempts a contravening export or import is liable to a penalty of not less than Rs 10,000 and not more than five times the value of the goods, whichever is more. The fixed Rs 10,000 option ignores the value-linked upper limit. The ten-times option misstates the multiple.

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