Penalties for exporting SCOMET items without a license

These are the important legal provisions related to penalties for exporting SCOMET items without a license

Section 14E of the Foreign Trade (Development & Regulations) Amendment Act, 2010 delineates the offences and penalties:-

14E. Offences and penalties.—

(1) In case of a contravention relating to specified goods, services or technologies, the penalty shall be in accordance with the provisions of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005).

(2) Where any person contravenes or attempts to contravene or abets, any of the provision(s) of this Chapter in relation to import or export of any specified goods or services or technology, he shall, without prejudice to any penalty which may be imposed on him, be punishable with imprisonment for a term stipulated in the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005).

(3) No court shall take cognizance of any offence punishable under this Chapter without the previous sanction of the Central Government or any officer authorised in this behalf by the Central Government by general or special order.]

In addition, Section 8 of the FTDR Act specifies suspension or cancellation of IE Code of the person who imports or exports specified goods services or technology in contravention of any provision of the Act or any rule or orders made thereunder.

Penalties specified in the WMD Act, 2005?

Sections 14 to 22 are relevant for understanding penalties and offences under the WMD Act, 2005. They can be briefly summarized as follows. For the legal version, see the WMD Act, 2005.

·         Offences and penalties.-Any person who contravenes, or attempts to contravene or abets, the provisions of section 8 or section 10 of the WMD Act, shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life, and shall also be liable to fine.

·         Punishment for aiding non-State actor or terrorist.- Any person who, with intent to aid any non-State actor or terrorist, contravenes the provisions of section 9 of this Act, shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life, and shall also be liable to fine.

·         Punishment for unauthorized export:-

§  Any person who knowingly contravenes, abets or attempts to contravene, the provisions of subsection (4) of section 13 of this Act, shall be punishable with fine which shall not be less than three lakh rupees and which may extend to twenty lakh rupees.

§  If any person is again convicted of the same offence under subsection (1), then he shall be punishable for the second and every subsequent offence with imprisonment for a term which shall not be less than six months but which may extend to five years and shall also be liable to fine.

·         Punishment for violation of other provisions of the Act.-

o   Where any person contravenes, or abets or attempts to contravene, any provision of this Act other than the provisions under sections 8, 9, 10 and 13(4) of this Act, he shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to five years and shall also be liable to fine.

o   For the second and every subsequent offence with imprisonment for a term which shall not be less than one year but which may extend to seven years and shall also be liable to fine.

·         Penalty for using false or making forged documents, etc. Punishable with fine which shall not be less than five lakh rupees or five times the value of the materials, equipment, technology or services, whichever is more.

·         Punishment for offences with respect to which no provision has been made. Punishable with imprisonment for a term which may extend to one year, or with fine, or with both.

In the case of offences by a company, who is liable?

Section 20 of the WMD Act, 2005 clarifies this. It says that where an offence has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. For the legal version, see WMD Act, 2005