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

Vikram Overseas failed to pay a penalty imposed under the Act, and the Director General wants to recover it. Which statement is correct under section 11?

The Director General can require customs officers to deduct the unpaid penalty from money owing to the person, as if it were payable under the Customs Act, 1962. In addition, the Adjudicating Authority may suspend the person's Importer-exporter Code Number until the penalty is paid or recovered.

  1. AThe Director General may require customs officers to deduct the amount from money owing to the person as if payable under the Customs Act, 1962, and the Adjudicating Authority may suspend the Importer-exporter Code Number until the penalty is paid or recoveredCorrect
  2. BRecovery is possible only through a civil suit, and the Importer-exporter Code Number cannot be suspended
  3. COnly the Collector of the District may recover it, and customs officers have no role
  4. DThe penalty lapses if unpaid for thirty days

Explanation

Section 11(5)(b) lets the Director General require customs officers to deduct the amount as if payable under the Customs Act, 1962. Section 11(7) lets the Adjudicating Authority suspend the Importer-exporter Code Number till the penalty is paid or recovered. The Collector route is only a fallback in clause (d), and nothing says the penalty lapses.

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