Exporters in the “Denied Entity List” were refused further benefits under the export promotion schemes. The denials and penalties were imposed in the April 1, 2016 to March 31, 2019 period.
“In addition to the above, action on defaulters is also taken by the Department of Revenue. During the lastthree years, Department of Revenue has identified and imposed penalties in over 400 cases,” he said in a written reply in the Lok Sabha.
India’s Foreign Trade Policy contains certain export promotion schemes which exempt customs duty on import of capital goods for promotion of exports and also on raw materials, components and consumables for manufacturing goods for exports. Export sops also provide compensation for neutralizing the disadvantages suffered on the goods and services exported.
“All these schemes have inbuilt obligations/terms and conditions which are required to be complied by the persons availing such schemes,” he said.
The government monitors these obligations and takes action against defaulters for non-compliance.
Such actions may include suspension, cancellation of the authorization, black listing the defaulter from availing any export promotion scheme, imposition of fiscal penalty, cancellation/suspension of Importer and Exporter Code number and initiating criminal proceedings.