2017 (9) TMI 1140 - AT - Customs

Smuggling - export of contraband item - Red Sanders Wood - penalty - Held that - Both the brothers were involved in illegal export of Red Sanders Wood which is prohibited item for export under Section 3 (2), and 3(3) of the Foreign Trade (D&R) Act. 1992 read with ITC (HS) Export Policy 2009-2014 for contravention for the provision of the Convention on International Trade in Endangered Species of Wild Flora (CITES) as contained on International Trade Policy - penalties rightly imposed - appeal dismissed - decided against appellant.

Summary

Issues:
Appeals against Orders in Appeal No.1055/2015 & 1007/2015 - Penalty imposition for illegal export of Red Sanders Wood.

Analysis:
The case involved appeals against penalties imposed on the appellants for attempting to export Red Sanders Wood disguised as 'Other Made-ups Jute Flooring Rolls.' The container was found to contain Red Sanders Wood along with Jute Flooring upon inspection based on an intelligence report. The wood samples were confirmed to be Red Sanders Wood by the Forest Research Institute. Statements from individuals involved revealed that the consignment was handed over by one individual to another for export. The brothers, proprietors of the exporting firm and the transporting company, were found to be actively engaged in the illegal export of Red Sanders Wood, a prohibited item under relevant trade laws. The consignment was rightfully confiscated and seized under the Customs Act. The tribunal upheld the penalties imposed by the department considering the active involvement of both appellants in the illegal export, leading to the dismissal of the appeals.

This judgment highlights the importance of adhering to trade laws and regulations, especially concerning the export of prohibited items. The involvement of multiple individuals in the illegal export scheme was established through statements and evidence, leading to the confirmation of penalties imposed by the department. The decision underscores the severity of penalties for violations related to prohibited exports, emphasizing the need for compliance with international trade policies and conventions. The tribunal's thorough analysis of the facts and submissions from both sides resulted in the affirmation of the penalties, serving as a deterrent against similar illegal activities in the future.