Exporters on Wednesday raised concerns on certain budget proposals which they called as “harsh and draconian” as they gave the authorities the power to seize goods.

A sub-section is proposed to be inserted in Section 113 of the Customs Act, which states that goods would be liable for confiscation if there is a ‘‘wrongful claim’’ of refund of any duty or tax in contravention of the provisions of the Customs Act.

‘‘The word ‘wrongful claim’ is subject to various interpretations and will put exporters at the mercy of field formations,” said S. K. Saraf, president of the Federation of Indian Export Organisations.

Saraf also said the Finance Bill has withdrawn the facility of payment of Integrated GST for exporters which would affect their working capital.

Engineering goods

The country’s engineering exports have increased 18.69 per cent in January and demand for such products is expected to be steady in the remaining two months of the current fiscal.