Penalty on export obligation

[Sandeep Jain]

Export Obligation delayed by 36months against import under advance import licence in 1998. The export was done in 2003. Please let me know what will be the penalty levied by DGFT. Also guide the way out to the issue. Thanks..Sandeep Jain 9322222552/9867222552

[Rama Krishana]

Penalties for contravention of the provision of foreign trade policy may be levied upto 5 times of the value of goods - see Section 11 of Foreign Trade (Development and Regulation) Act, 1992. On the otherside, you need to reverse all the benefits and exemption availed against export obligation under respective notifications or policies with interest and penalties under respective provisions.

AI Summary

Penalty for contravening foreign trade policy may include reversal of benefits with interest and amplified valuation consequences. Contravention of export obligations can attract penalties under Section 11 of the Foreign Trade (Development and Regulation) Act, 1992 of up to five times the value of the goods, together with reversal of any benefits or exemptions availed under advance licence or notifications, plus interest and additional penalties as provided in the relevant policy and notifications.