Indian Kanoon - Search engine for Indian Law

5.14 Section 11 of the Foreign Trade (Development and Regulation) Act, 1992 (in short „Foreign Trade Act‟) provides for the consequences of export or import being made by any person in violation of the provisions of the Act. Sub-section (2) of Section 11 provides that, in the event of violation there shall be a penalty which may not exceed Rs 1,000/- or five times of value of the goods, whichever is more.

5.15 Sub-section (4) of Section 11 of the Foreign Trade Act provides for recovery of penalty by way of land revenue, and in the event the person concerned does not pay the penalty, the adjudicating authority is empowered to suspend the importer/exporter code number till penalty is paid. The rules made under the Foreign Trade Act, that is, the Foreign Trade (Regulation), Rules 1993 (in short „Foreign Trade Rules‟) provide for various aspects, including in Rule 11, issues pertaining to declaration as to the value and quality of imported goods. Rule 11 of the Foreign Trade Rules imposes an obligation on the owner on importation of any goods whether or not liable to duty, to state the value, quality and description of such goods to the best of his knowledge and belief in the bill of entry and further that at the foot of the bill of entry he subscribes to the declaration of truth of such statement made in the bill of entry. Rule 14 prohibits a person from making, signing or using or caused to be made, signed or used in the declaration inter alia for importing any goods which he knows or has reason to believe contains a declaration or a statement or document which is false in material, particulars.