Documentary proof of export destination is essential; shipping agent liability was sustained for failing to verify delivery abroad.

A shipping agent must retain and produce documentary proof that export goods reached the declared foreign destination, including evidence of the port of discharge. In the absence of reliable material showing that the goods reached the stated Russian port, or that they were not diverted through a third country, mere explanations about old records or changed agency arrangements were insufficient. The failure to furnish supporting proof was treated as assistance in contravening foreign exchange export directions and related law, so liability for the contravention was sustained and the penalty upheld.

---

---

Issues: Whether a shipping agent could escape penalty for contravention of foreign exchange export directions by asserting inability to produce proof that the goods reached the declared foreign destination.

Analysis: The export documents showed Russia as the final destination, but no reliable evidence was produced to establish that the goods actually reached the Russian port or that they were not off-loaded in a third country. The shipping agent was under an obligation to maintain and produce documentary proof supporting the declared destination, including port of discharge evidence. Mere assertions that the records were old or that the agency arrangement had changed were insufficient, especially when other co-noticees were able to produce supporting material in similar circumstances. On the facts found, the shipping agent's failure to furnish the requisite proof was treated as assistance to the exporter in contravening the RBI directions and the provisions of the foreign exchange law.

Conclusion: The shipping agent was held liable for the contravention and the penalty was sustained.

---