Provisional release conditions for detained imports were moderated by retaining a bond and reducing the bank guarantee burden.

Provisional release conditions for detained imported goods were examined in the context of alleged misdeclaration and re-determination of value. The requirement to pay the entire duty on the reclassified goods, furnish a bond for the full re-determined value, and provide a substantial bank guarantee was found to be overly onerous. A balanced approach was applied by preserving revenue protection through a bond while reducing the monetary security needed for release. The provisional release terms were therefore modified in favour of the importer, with the full differential duty demand waived, the bond condition retained, and the bank guarantee requirement reduced.

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Issues: Whether the conditions imposed for provisional release of the imported goods were excessive and required modification.

Analysis: The goods were detained pending customs action on the basis of alleged misdeclaration and re-determination of value. The challenge was confined to the terms of provisional release. The imposed requirement of paying the entire duty on the re-classified goods, furnishing a bond for the full re-determined value, and giving a substantial bank guarantee was found to be onerous in the circumstances. A balanced approach was adopted by protecting the revenue through a bond while reducing the monetary security required for release.

Conclusion: The provisional release conditions were modified in favour of the appellant by waiving the demand for full differential duty, retaining the bond condition, and reducing the bank guarantee requirement.

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