Provisional release of seized export goods cannot require bank guarantee where the customs circular permits bond alone.

In provisional release of seized export goods, the customs circular required release on execution of a bond equivalent to the value of the goods and probable fine and penalty, and did not prescribe a bank guarantee. Since the dispute concerned only provisional release and no duty demand or penalty adjudication had been made, insisting on a bank guarantee was unjustified. The bank guarantee condition was set aside and release was directed on bond alone.

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Issues: Whether, in the case of provisional release of seized export goods, the authorities could insist on furnishing bank guarantees in addition to execution of a bond equivalent to the value of the seized goods and probable fine and penalty.

Analysis: The dispute concerned only provisional release and no duty demand or penalty adjudication had been made. The governing customs circular provided that seized export goods, except prohibited or contraband goods, should be released provisionally on execution of a bond equivalent to the value of the goods and the probable fine and penalty, and it did not prescribe any requirement of bank guarantee. Since the circular controlled the manner of provisional release, the condition requiring bank guarantees was not justified.

Conclusion: The requirement of furnishing bank guarantees was set aside and provisional release was directed on execution of the bond alone; the appellants succeeded to that extent.

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