Import policy applicability turns on shipment date, so later policy change could not support confiscation or penalty.

Import restrictions under the Exim Policy are to be tested by reference to the shipment or import date, not the later date of duty payment or clearance. On the facts recorded, the goods were shipped and the bill of entry was filed on 3-4-1996, and the applicable policy was Para 5 of the Exim Policy 1992-1997. The contrary approach based on a 45-day period from opening of the letter of credit to payment of duty was rejected as unsustainable, so the confiscation order and penalty could not stand.

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Issues: Whether the import was governed by the Exim Policy in force on the date of shipment and bill of entry, and whether confiscation and penalty could be sustained on the basis of a later policy change.

Analysis: The relevant policy condition had to be applied with reference to the shipment/import date, not the later date of duty payment or clearance. The record showed that the goods were shipped and the bill of entry was filed on 3-4-1996, while the policy amendment took effect on 25-3-1996. On that basis, Para 5 of the Exim Policy 1992-1997 governed the import, and the reasoning adopted by the lower appellate authority on the 45-day period from opening of the letter of credit to payment of duty was not sustainable.

Conclusion: The confiscation order and the penalty could not be sustained, and the appeal was allowed.

Final Conclusion: The import was held to fall within the applicable policy framework determined by shipment and import dates, with the result that the adverse customs order was set aside and relief followed.

Ratio Decidendi: For determining the applicability of import restrictions under the Exim Policy, the material date is the date of shipment or import, not the later date of duty payment or clearance.

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