Bona fide export compliance defeats section 18(2) contravention where third-party conduct prevents timely repatriation of proceeds.

Exporters who act bona fide with normal banking precautions and due diligence are not in contravention of section 18(2) of the Foreign Exchange Regulation Act, 1973 where non-realisation of export proceeds results from third-party conduct or circumstances beyond their control. The cargo was released by the carrier without the required documents and without the exporters' consent, and they promptly pursued recovery through correspondence and a civil suit. On those facts, the statutory requirement of delayed repatriation caused by the exporter's own act, omission, or refraining from action was not satisfied, so no contravention was established and the penalty could not stand.

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Issues: Whether the appellants contravened section 18(2) of the Foreign Exchange Regulation Act, 1973 by failing to realise and repatriate the export proceeds within the prescribed period when the non-realisation was caused by acts of third parties and circumstances beyond their control.

Analysis: The export documents showed that the appellants had taken the normal banking precautions for securing payment. The delay in realisation arose because the cargo was released by the carrier without the required documents and without the appellants' consent, and the appellants immediately pursued recovery through correspondence and a civil suit. Section 18(2) contemplates some act, omission, or refraining from action by the exporter which has the effect of securing delayed payment. Where the exporter has acted bona fide and with due diligence, but events occur beyond ordinary control and the exporter is prevented by third-party conduct from obtaining payment within time, the statutory contravention is not made out.

Conclusion: No contravention of section 18(2) was established against the appellants, and the penalty could not stand.

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