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

Rohan Exports attempts to ship goods in breach of the foreign trade policy. The goods are valued at Rs 4,00,000. Under the Act, what is the penalty range for such contravention?

The penalty is not less than ten thousand rupees and not more than five times the value of the goods, whichever is more. Here the ceiling is Rs 20,00,000, but it is a maximum, not a fixed penalty, and the attempt itself is punishable.

  1. ANot less than Rs 10,000 and not more than five times the value of the goods, whichever is moreCorrect
  2. BExactly five times the value of the goods, that is Rs 20,00,000
  3. CNot less than Rs 10,000 and not more than Rs 4,00,000
  4. DNot less than twice the value of the goods and not more than ten times the value

Explanation

Section 11(2) provides a penalty of not less than Rs 10,000 and not more than five times the value of the goods, whichever is more. Five times Rs 4,00,000 is Rs 20,00,000, so the maximum is Rs 20,00,000, but it is a ceiling and not a fixed amount.

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