Foreign Trade (Regulation) Rules, 1993 — Refusal of grant of licence, certificate, scrip or any instrument bestowing financial or fiscal benefits and recovery of benefits

Official text

(1) The Director General or the licensing authority may, for reasons to be recorded in writing, refuse to grant or renew a licence, certificate, scrip or any instrument bestowing financial or fiscal benefits if—

(a) the applicant has contravened any law relating to customs or foreign exchange;

(b) the application does not substantially conform to any provision of these rules;

(c) the application or any document used in support thereof contains any false or fraudulent or misleading statement, or where any person makes or abets or attempts to make any export or import in contravention of any provision of the Act or any rules and orders made thereunder or the Policy;

(d) it has been decided by the Central Government to canalise the export or import of goods or services or technology and distribution thereof through special or specialised agencies;

(e) any action against the applicant is for the time being pending under the Act or rules and Orders made thereunder;

(f) the applicant is or was a partner in a partnership firm (including a limited liability partnership) or is or was a Director of a company or a proprietorship firm having controlling interest against which any action is for the time being pending under the Act or rules and Orders made thereunder;

(g) the applicant fails to pay any penalty imposed on him under the Act;

(h) the applicant has tampered with such an instrument;

(i) the applicant or any agent or employee of the applicant with his consent has been a party to any corrupt or fraudulent practice for the purpose of obtaining any other such instrument;

(j) the applicant is not eligible for it in accordance with any provision of the Policy;

(k) the applicant fails to produce any document called for by the Director General or the licensing authority;

(l) in the case of an instrument for import, no foreign exchange is available for the purpose;

(m) the application has been signed by a person other than a person duly authorised by the applicant under the provisions of the Policy;

(n) the applicant has attempted to obtain or has obtained or has erroneously claimed Terminal Excise Duty, duty drawback, cash assistance benefits admissible to an Importer-exporter Code holder or any other similar benefits from the Central Government or any agency authorised by it in relation to exports made by him on the basis of any false, fraudulent or misleading statement or any document which is false or fabricated or tampered with.

(2) The refusal under sub-rule (1) shall be without prejudice to any other action that may be taken against an applicant by the licensing authority under the Act. In case of any erroneous payment of Terminal Excise Duty, duty drawback, cash assistance benefits or any other similar benefits, the Director General or the licensing authority may, after giving that person a notice in writing informing him of the details of erroneous payment and a reasonable opportunity of making a representation in writing and, if he so desires, of being heard, authorise—

(a) recovery of benefits as arrears of land revenue; or

(b) adjustment against future claims,

after recording reasons in writing, provided the Adjudicating Authority is satisfied with the facts relating to erroneous payment.