Section 11 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 11 is the penalty section of the Act. Sub-sections (1) to (4) say that no import or export may be made except in accordance with the Act, the rules and orders and the foreign trade policy, set the penalty for contravening that rule and for using false documents, and allow settlement when a person admits the contravention. The 2010 Amendment Act substituted the whole of section 11. This article is written from the 2010 text, as per the Act as enacted in 1992 read with the 2010 Amendment Act.
No export or import may be made except as the Act, its rules and orders and the foreign trade policy allow. A person who makes, abets or attempts a contravening export or import is liable to a penalty of not less than ten thousand rupees and not more than five times the value of the goods, services or technology, whichever is more. Using a forged, tampered or false declaration, statement or document draws a penalty with the same figures (ten thousand rupees and five times the value), though sub-section (3) is printed with a slip. After a notice, an admission can lead to a settlement amount fixed by the Adjudicating Authority.
What the 1992 section said
In 1992 sub-section (2) provided a penalty "not exceeding one thousand rupees or five times the value of the goods in respect of which any contravention is made or attempted to be made, whichever is more", and there was no separate penalty for false documents. That wording is history. Since the substitution the figures below apply. The 2010 Act was brought into force by notification; the date is not in the sources consulted.
Section 11(1): the basic rule
"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."
The rule has four sources of obligation: the Act, the rules, the orders (made under sections 3 and 4) and the foreign trade policy as it stands from time to time. A breach of any of them is a contravention for sub-section (2).
Section 11(2): the penalty for contravention
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 is "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".
Points to note:
- Three acts are caught: making, abetting and attempting. A shipment that was stopped can still attract the penalty if it was attempted.
- Floor and cap: ten thousand rupees is the lower figure; five times the value is the upper figure, as printed.
- Valuation base: the goods or services or technology "in respect of which" the contravention is made or attempted.
- "Whichever is more" closes the sentence. The text does not itself explain how that phrase works with the floor and cap, so the adjudication order should be read for the basis used.
- Who imposes it: the Adjudicating Authority, after a notice under section 14; see sections 13 and 14.
Example: Anita Overseas attempts to export a consignment valued at Rs 4,00,000 (an invented figure) that needs an authorisation it does not hold. Five times the value is Rs 20,00,000. The section sets the range in which the Adjudicating Authority may fix a penalty, with ten thousand rupees as the lower figure; the actual amount is a matter for the order after notice and hearing.
Section 11(3): false, forged or tampered documents
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 is 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".
The gazette prints "not less than ten thousand rupees or more than five times" here, where sub-section (2) prints "and not more than". The slip is in the gazette itself; the words are given here as printed and the sub-section has not been corrected. Three elements are needed: a declaration, statement or document submitted under the Act; knowledge or reason to believe that it is forged, tampered or false; and the falsity must be in a material particular.
Rule 14 of the Foreign Trade (Regulation) Rules, 1993 also bars false declarations; see our article on rules 13 and 14.
If you suspect a past declaration was wrong, an early legal consultation lets you see the position before a notice arrives.
Section 11(4): settlement on admission
"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."
The gazette prints "class or classes or cases", where "classes of cases" is meant. The conditions:
- a notice from the Adjudicating Authority;
- an admission of the contravention by the person; and
- a class of case and manner "as may be prescribed".
The class and manner are in rule 16 of the Rules (see rule 16). The rule-making power is section 19(2)(g), which now refers to "sub-section (4) of the section 11" (printed so). The section says the Authority "may", not "shall", so settlement is discretionary.
At a glance
| Sub-section | Subject | Key words |
|---|---|---|
| 11(1) | General rule | Only in accordance with Act, rules, orders and policy |
| 11(2) | Penalty | Not less than Rs 10,000 and not more than five times the value |
| 11(3) | False documents | Forged, tampered or false in a material particular |
| 11(4) | Settlement | On admission after notice; amount determined by Adjudicating Authority |
Sub-sections (5) to (9) on recovery, confiscation and release are in our article on section 11 recovery, confiscation and redemption. Section 12 says a penalty or confiscation does not stop other punishments under other laws.
Need help with a notice or penalty?
A notice under section 14 starts the clock for your written reply. Our legal consultation service can help you review the allegation, the value on which a penalty may be based and whether settlement is open to you. Later amendments to the Act, the Rules and the Foreign Trade Policy should be checked.
Key takeaways
- Section 11(1) bars any export or import not in accordance with the Act, rules, orders and policy.
- Section 11(2): penalty of not less than ten thousand rupees and not more than five times the value, whichever is more, for making, abetting or attempting.
- Section 11(3): a penalty with the same figures for forged, tampered or false declarations, statements or documents, printed with a slip ("or" for "and").
- Section 11(4): settlement on admission, in classes and manner prescribed.
- The gazette has printing slips in sub-sections (3) and (4); they do not change the sense.
Read next
- Section 11: recovery of penalty, confiscation and redemption
- Sections 13 and 14: Adjudicating Authority and notice before penalty
- Rule 16: settlement of contraventions
- Penalties under the Customs Act, sections 112 to 117
Disclaimer: Based on the Foreign Trade (Development and Regulation) Act, 1992 as enacted read with the Amendment Act of 2010, and on the Foreign Trade (Regulation) Rules, 1993 as notified read with the Amendment Rules of 2015, as consulted on 2 October 2026. Later amendments, the current Foreign Trade Policy and the Handbook of Procedures should be checked. This article is general information, not legal advice; check the official text before acting.