Pre-shipment inspection certificate requirement treated as a safeguard, not a basis for confiscation or penalty absent prohibited goods.

Import control under the amended EXIM Policy was examined in relation to non-production of a pre-shipment inspection certificate. The amendment came into force while the goods were being loaded and shipped, and the supplier had certified that the consignment contained no arms, ammunition, explosives or war-related material; the goods were also subjected to 100% examination without objectionable material being found. On these facts, the omission to produce the certificate was treated as a non-intentional infraction, and the certificate requirement was regarded as a safeguard against prohibited goods rather than a basis for penal action. Confiscation and penalty were therefore not sustainable and were set aside.

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Issues: Whether confiscation of the imported goods and imposition of penalty were justified for non-production of the pre-shipment inspection certificate required under the amended EXIM Policy.

Analysis: The amendment requiring a pre-shipment inspection certificate came into force during the period when the goods were being loaded and shipped. The supplier had issued a certificate stating that the consignment did not contain arms, ammunition, explosive or war-related material, and the goods had also been subjected to 100% examination with no such objectionable material found. On these facts, the omission to produce the certificate was treated as a non-intentional infraction and the requirement was viewed as a safeguard against prohibited goods rather than a basis for penal action in the absence of any incriminating material.

Conclusion: The confiscation and penalty were not sustainable and were set aside; the appeal was allowed.

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