Designated port restrictions on unshredded scrap import upheld, with confiscation, redemption fine and penalty sustained.

Import of unshredded heavy melting scrap through a non-designated port was treated as a breach of the import policy and customs circular restricting such clearance to designated ports only. As ICD, Garhi-Harsaru was not a designated port, the goods were held liable to confiscation under the foreign trade and customs framework. The redemption fine and penalty were sustained, with the tribunal noting that the amounts imposed were already lenient in light of the goods' value and the security concerns underlying the restriction.

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Issues: Whether import of unshredded heavy melting scrap through a non-designated port violated the import policy and circular conditions so as to warrant confiscation, redemption fine, and penalty.

Analysis: The import policy permitted unshredded metallic waste and scrap only through designated ports, and the relevant customs circular reiterated that unshredded scrap could be cleared only at such ports. ICD, Garhi-Harsaru was not among the designated ports. The import of unshredded heavy melting scrap through that port therefore amounted to a violation of the foreign trade policy and the customs framework, making the goods liable to confiscation. The fine and penalty already imposed were found to be lenient in view of the value of the goods and the security concerns underlying the restriction.

Conclusion: The violation was established, and the confiscation, redemption fine, and penalty were upheld against the assessee.

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