Penalty on export obligation, Customs - Exim - SEZ

[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

Posts / Replies

[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.