On 28th January 2020, Bharti Airtel stock closed 4.55% lower than the previous day. The telecom giant was put under the Denied Entry List (DEL) which is known as Blacklist by DGFT for non-fulfilment of Export Obligation in respect of certain EPCG authorisation issued to them. Following the move, the company was not allowed to avail any export benefit or license from DGFT. This caused quite a blow to company’s reputation and stock prices. However, on 31st January 2020, it was removed from the DEL list.
Further, Seeing about legal disputes which may lead to blacklisting:
In our blog Exporters-Importers beware of getting black-listed!!!, we have talked a little about blacklisting. Further, we will be seeing about legal disputes which may lead to blacklisting:
- Non fulfillment of authorisation/licence (EPCG, Advance authorisation etc.) conditions
- Complaints received by foreign buyers on quality.
- Complaints by importers against suppliers on quality of products received.
- Complaints of unethical commercial dealings categorized mainly as non-supply, partial-supply and/or non-adherence to delivery schedules etc.
- Trade of restricted and/or prohibited goods
# What are the Consequences?
Actions that can be taken against erring exporters as per Sections mentioned in Foreign Trade (Development and Regulation) Act, 1992 (FTDR Act) are-
- Suspension or cancellation of Importer Exporter code (IEC) number given in Section 8 of FTDR Act
- Refusal to grant or renew a license, scrip or any other instrument bestowing financial or fiscal benefit under Section 9 (2) of FTDR Act
- Suspend or cancel any License, certificate, scrip or any instrument bestowing financial or fiscal benefit granted as per Section 9(4) of FTDR Act
- Imposition of fiscal penalty under Section 11 (2) of FTDR Act
Recommendation :
Any Exporter / Importer should be very cautious while dealing in international trade and complying with applicable laws to avoid falling in the pit-hole of getting blacklisted, because -
Ignorance of law is not an excuse.
Note :
Authorisation is not a right. No person can claim Authorisation as a right and DGFT or RA shall have power to refuse to grant or renew the same in accordance with provisions of FT (D&R) Act, Rules made there under and FTP
To know how to avoid getting blacklisted or how to come out of Denied Entity List (DEL), contact us via e-mail / phone call, we will get back to you in short time. We provide services for Import Export Incentives, Import Export Legal Services, EXIM Training, EXIM Compliance.
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