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

Ravi Impex has an unpaid penalty imposed under the FTDR Act, 1992. Which consequence can the Adjudicating Authority impose on its Importer-Exporter Code Number till the penalty is paid or recovered?

The Adjudicating Authority may suspend the Importer-Exporter Code Number of a person who fails to pay a penalty imposed under the Act. The suspension lasts until the penalty is paid or recovered, so it is temporary and not a permanent cancellation.

  1. ASuspension of the Code NumberCorrect
  2. BPermanent cancellation of the Code Number
  3. CTransfer of the Code Number to another firm
  4. DAutomatic doubling of the Code Number validity

Explanation

Section 11(7) permits the Adjudicating Authority to suspend the Importer-Exporter Code Number of a person failing to pay a penalty, till the penalty is paid or recovered. It is a temporary suspension, not permanent cancellation. The other options have no basis in the Act.

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