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

Sunrise Exports Pvt Ltd of Surat exports goods worth ₹4,00,000 in contravention of the foreign trade policy. Under the FTDR Act, 1992, what is the penalty range for such contravention?

The penalty is not less than ₹10,000 and not more than five times the value of the goods, services or technology involved, whichever is more. For goods worth ₹4,00,000 the upper limit works out to ₹20,00,000.

  1. ANot less than ₹10,000 and not more than five times the value of the goods, whichever is moreCorrect
  2. BExactly ₹10,000 irrespective of the value of the goods
  3. CNot less than ₹10,000 and not more than twice the value of the goods
  4. DNot less than five times the value of the goods, with no upper limit

Explanation

Section 11(2) provides for a penalty of not less than ten thousand rupees and not more than five times the value of the goods, services or technology, whichever is more. Here the upper limit is five times ₹4,00,000, i.e. ₹20,00,000. A fixed ₹10,000 or a two-times cap is not what the Act says.

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