Misdeclaration of export quantity and value can trigger customs confiscation and exporter penalty under linked foreign exchange restrictions.

Misdeclaration of quantity or export value in breach of the truthful export declaration requirement under the Foreign Exchange Regulations Act, 1973 was treated as a prohibition under the Customs Act, 1962 through Section 67 of that Act. Goods exported contrary to that prohibition were liable to confiscation under Section 113(d), and the exporter became liable to penalty under Section 114. On the stated facts, the misdeclaration was found both in quantity and value, and the explanation offered was held insufficient. The confiscation and penalty were therefore upheld.

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Issues: Whether misdeclaration of quantity and value in export goods, in the context of the Foreign Exchange Regulations Act, 1973, attracted confiscation under the Customs Act, 1962 and consequent penalty on the exporter.

Analysis: Section 18(1)(a) of the Foreign Exchange Regulations Act, 1973 required a truthful export declaration including the full export value of the goods. By virtue of Section 67 of that Act, the prohibition under Section 18(1)(a) operated as a prohibition under Section 11 of the Customs Act, 1962. Goods attempted to be exported contrary to that prohibition fell within Section 113(d) of the Customs Act, 1962, and the person attempting such export became liable under Section 114 of the Customs Act, 1962. On the facts found, there was misdeclaration both as to quantity and value, and the explanation offered did not justify the breach.

Conclusion: The confiscation of the goods and the penalty on the exporter were upheld.

Ratio Decidendi: Where export goods are misdeclared in quantity or value in breach of the export declaration requirement under the Foreign Exchange Regulations Act, 1973, the resulting prohibition is treated as a prohibition under the Customs Act, 1962, making the goods liable to confiscation under Section 113(d) and the exporter liable to penalty under Section 114.

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