Bona fide wrong shipment permits re-export without redemption fine, penalty or duty where no mala fides or local diversion is shown.

Where imported goods were wrongly shipped by the foreign supplier due to a bona fide transhipment mistake, and the importer promptly notified Customs and the supplier on discovery, redemption fine, penalty and duty were held not leviable. In the absence of mala fides, deliberate misdeclaration, or any intention to clear the wrong goods for local consumption, punitive monetary conditions were not justified. Re-export of the consignment was therefore permitted without such liabilities, and the order imposing monetary consequences was set aside.

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Issues: Whether redemption fine, penalty and duty were leviable when imported goods were found to be wrongly shipped by the foreign supplier and the importer sought re-export of the consignment.

Analysis: The wrong shipment was found to be the result of a genuine mistake at the transhipment stage abroad, and the importer promptly informed the Customs authorities and the foreign supplier upon discovery of the discrepancy. In the absence of material showing mala fides, deliberate misdeclaration, or an intention to clear the wrong goods for local consumption, the basis for imposing redemption fine and penalty was not made out. The governing principle applied was that where re-export is permitted in such circumstances, punitive monetary conditions are not warranted.

Conclusion: Redemption fine, penalty and duty were not leviable, and re-export was to be permitted without such conditions.

Final Conclusion: The order imposing monetary liabilities was set aside and the consignment was allowed to be re-exported free from redemption fine, penalty and duty.

Ratio Decidendi: Where import of wrong goods is shown to have occurred by a bona fide mistake without mala fides or deliberate evasion, re-export may be allowed without redemption fine, penalty or duty.

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