Pre-import condition under the Foreign Trade Policy was held ultra vires, and violation proceedings could not survive.

The Gujarat HC considered whether the pre-import condition inserted in paragraph 4.14 of the Foreign Trade Policy, 2015-2020 and clause (xii) of Notification No. 18/2015-Cus. was legally sustainable. It relied on an earlier decision of the same Court that had already examined the identical condition and struck it down as being beyond the Advance Authorisation Scheme under the Foreign Trade Policy and inconsistent with the Handbook of Procedures. Following that reasoning, the Court held the condition to be ultra vires and invalid, with the result that proceedings initiated for its alleged violation could not survive.

---

---

Issues: Whether the pre-import condition inserted in paragraph 4.14 of the Foreign Trade Policy, 2015-2020 and clause (xii) of Notification No. 18/2015-Cus. could be sustained as valid.

Analysis: The challenge was covered by an earlier decision of the same Court in which the identical pre-import condition had already been examined. That decision had struck down the condition as being beyond the Advance Authorisation Scheme under the Foreign Trade Policy, 2015-2020 and inconsistent with the Handbook of Procedures. Following that reasoning, the same condition could not be upheld in the present matter.

Conclusion: The pre-import condition was held to be ultra vires and was struck down, with the consequence that proceedings initiated for its alleged violation could not survive.

---