Import Policy Interpretation: Olive oil was covered by Open General Licence and no packing limit could be implied from the scheme.

Olive oil imported in small packing was treated as importable under the Open General Licence because the import policy, read as a whole, specifically listed olive oil in Appendix 10 and imposed no packing restriction for that commodity. The note explains that "consumables" were confined to items used in a manufacturing process and not forming part of the end product, so olive oil could not be denied coverage as a prohibited consumer good on that basis. By contrast, where the policy intended packing limits, it said so expressly. The stated result was that the fine in lieu of confiscation was remitted in full.

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Issues: Whether olive oil imported in small packing was covered by Open General Licence under item 28 of Appendix 10 of the Import Trade Memorandum dated 2-4-1980, and whether it could be treated as a prohibited consumer good or as a permitted crude drug without any packing restriction.

Analysis: The policy had to be read as a whole. The definition of "consumables" in the relevant import policy was confined to items participating in or required for a manufacturing process and not forming part of the end product. Olive oil in small packing did not answer that description. Item 28 of Appendix 10 permitted import of crude drugs required for Ayurvedic and Unani medicines, and List 4 specifically included olive oil. No packing restriction was prescribed for olive oil, whereas the policy expressly imposed packing restrictions in other entries, such as dates and bulk-only items like sugar or milk. The absence of any such restriction for olive oil showed that the policy makers did not intend to limit its import by packing size.

Conclusion: Olive oil was importable under Open General Licence under item 28 read with item 58 of List 4 of Appendix 10, without restriction as to packing size.

Final Conclusion: The appeal succeeded and the fine imposed in lieu of confiscation was remitted in full.

Ratio Decidendi: Where an import policy specifically permits a listed commodity and does not impose a packing restriction, such restriction cannot be implied by treating the commodity as a prohibited consumer good; the policy must be construed according to its express terms and in the context of the scheme as a whole.

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