10. Power relating to search and seizure.—1
[(1) The Central Government may, by notification in
the Official Gazette, authorise any person for the purposes of exercising such powers with respect to,—
(a) entering such premises where the goods are kept, stored or processed, manufactured, traded or
supplied or received for the purposes of import or export and searching, inspecting and seizing of
such goods, documents, things and conveyances connected with such import and export of goods;
(b) entering such premises from which the services or technology are being provided, supplied,
received, consumed or utilised and searching, inspecting and seizing of such goods, documents,
things and conveyances connected with such import and export of services and technology,
subject to such requirements and conditions and with the approval of such officer, as may be prescribed:
Provided that the provisions of clause (b) shall be applicable, in case of import or export of services
or technology, only when the service or technology provider is availing benefit under the foreign trade
policy or is dealing with specified services or specified technologies.]
(2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches and
seizures shall, so far as may be, apply to every search and seizure made under this section.
2
[11. Contravention of provisions of this Act, rules, orders and foreign trade policy.—(1) No
export or import shall be made by any person except in accordance with the provisions of this Act, the
rules and orders made thereunder and the foreign trade policy for the time being in force.
(2) Where any person makes or abets or attempts to make any export or import in contravention of
any provision of this Act or any rules or orders made thereunder or the foreign trade policy, he shall be
liable to a penalty of not less than ten thousand rupees and not more than five times the value of the goods
or services or technology in respect of which any contravention is made or attempted to be made,
whichever is more.
(3) Where any person signs or uses, or causes to be made, signed or used, any declaration, statement
or document submitted to the Director General or any officer authorised by him under this Act, knowing
or having reason to believe that such declaration, statement or document is forged or tampered with or
false in any material particular, he shall be liable to a penalty of not less than ten thousand rupees or more
than five times the value of the goods or services or technology in respect of which such declaration,
statement or document had been submitted, whichever is more.
(4) Where any person, on a notice to him by the Adjudicating Authority, admits any contravention,
the Adjudicating Authority may, in such class or classes or cases and in such manner as may be
prescribed, determine, by way of settlement, an amount to be paid by that person.
(5) A penalty imposed under this Act may, if it is not paid by any person, be recovered by any one or
more of the following modes, namely:—
(a) the Director General may deduct or require any officer subordinate to him to deduct the
amount payable under this Act from any money owing to such person which may be under the control
of such officer; or
(b) the Director General may require any officer of customs to deduct the amount payable under
this Act from any money owing to such person which may be under the control of such officer of
customs, as if the said amount is payable under the Customs Act, 1962 (52 of 1962); or
(c) the Director General may require the Assistant Commissioner of Customs or Deputy
Commissioner of Customs or any other officer of Customs to recover the amount so payable by
detaining or selling any goods (including the goods connected with services or technology) belonging
to such person which are under the control of the Assistant Commissioner of Customs or Deputy
1. Subs. by Act 25 of 2010, s. 11, for sub-section (1) (w.e.f.27-8-2010).
2. Subs. by s. 12, ibid., for section 11(w.e.f.27-8-2010).
9
Commissioner or Customs or any other officer of Customs, as if the said amount is payable under the
Customs Act, 1962 (52 of 1962); or
(d) if the amount cannot be recovered from such person in the manner provided in clauses (a), (b)
and (c),—
(i) the Director General or any officer authorised by him may prepare a certificate signed by
him specifying the amount due from such person and send it to the Collector of the District in
which such person owns any property or resides or carries on business and the said Collector on
receipt of such certificate shall proceed to recover from such person the amount specified
thereunder as if it were an arrear of land revenue; or
(ii) the Director General or any officer authorised by him (including an officer of Customs
who shall then exercise his powers under the Customs Act, 1962 (52 of 1962) ) and in accordance
with the rules made in this behalf, detain any movable or immovable property belonging to or
under the control of such person, and detain the same until the amount payable is paid, as if the
said amount is payable under the Customs Act, 1962; and in case, any part of the said amount
payable or of the cost of the distress or keeping of the property, remains unpaid for a period of
thirty days next after any such distress, may cause the said property to be sold and with the
proceeds of such sale, may satisfy the amount payable and costs including cost of sale remaining
unpaid and shall render the surplus, if any to such person.
(6) Where the terms of any bond or other instrument executed under this Act or any rules made
thereunder provide that any amount due under such instrument may be recovered in the manner laid down
in sub-section (5), the amount may, without prejudice to any other mode of recovery, be recovered in
accordance with the provisions of that sub-section.
(7) Without prejudice to the provisions contained in this section, the Importer-Exporter Code Number
of any person who fails to pay any penalty imposed under this Act, may be suspended by the
Adjudicating Authority till the penalty is paid or recovered, as the case may be.
(8) Where any contravention of any provision of this Act or any rules or orders made thereunder or
the foreign trade policy has been, is being, or is attempted to be, made, the goods (including the goods
connected with services or technology) together with any package, covering or receptacle and any
conveyances shall, subject to such conditions and requirement as may be prescribed, be liable to
confiscation by the Adjudicating Authority.
(9) The goods (including the goods connected with services or technology) or the conveyance
confiscated under sub-section (8) may be released by the Adjudicating Authority, in such manner and
subject to such conditions as may be prescribed, on payment by the person concerned of the redemption
charges equivalent to the market value of the goods or conveyance, as the case may be.]
1
[11A. Crediting sums realised by way of penalties in Consolidated Fund of India.—All sums
realised by way of penalties under this Act shall be credited to the Consolidated Fund of India.
11B. Empowering Settlement Commission for regularisation of export obligation default.—
Settlement of customs duty and interest thereon as ordered by the Settlement Commission as constituted
under section 32 of the Central Excise Act, 1944 (1 of 1944), shall be deemed to be a settlement under
this Act.]
12. Penalty or confiscation not to interfere with other punishments.—No penalty imposed or
confiscation made under this Act shall prevent the imposition of any other punishment to which the
person affected thereby is liable under any other law for the time being in force.
13. Adjudicating Authority.—Any penalty may be imposed or any confiscation may be adjudged
under this Act by the Director General or, subject to such limits as may be specified, by such other officer
as the Central Government may, by notification in the Official Gazette, authorise in this behalf.
1. Ins. by Act 25 of 2010, s. 13 (w.e.f.27-8-2010).
10
14. Giving of opportunity to the owner of the 1
[goods (including the goods connected with
services or technology)], etc.—No order imposing a penalty or of adjudication of confiscation shall be
made unless the owner of the 1
[goods (including the goods connected with services or technology)] or
conveyance, or other person concerned, has been given a notice in writing—
(a) informing him of the grounds on which it is proposed to impose a penalty or to confiscate
such 1
[goods (including the goods connected with services or technology)] or conveyance; and
(b) to make a representation in writing within such reasonable time as may be specified in the
notice against the imposition of penalty or confiscation mentioned therein, and, if he so desires, of
being heard in the matter.