Import restriction on multifunction digital copiers turned on essential function, not tariff classification, under the foreign trade policy.

Imported second-hand digital multifunction print and copying machines were treated as restricted photocopier machines under paragraph 2.17 of the Foreign Trade Policy 2004-2009 because their essential function was photocopying, even though they also had printing capability. The Court accepted the Tribunal's factual finding that the added digital printing feature did not change the goods' essential character, and held that the policy term had to be understood in common parlance by reference to functionality rather than a tariff heading. A cited classification ruling was found inapplicable because the dispute concerned import restriction, not tariff classification.

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Issues: Whether the imported second-hand digital multifunction print and copying machines were to be treated as photocopier machines falling within the restricted import category under paragraph 2.17 of the Foreign Trade Policy 2004-2009, thereby requiring a licence.

Analysis: The import consisted of second-hand machines, and the policy expressly restricted second-hand photocopier machines while allowing second-hand capital goods freely. The Court accepted the Tribunal's factual finding that the imported machines performed the function of photocopying in substance, even though they also had printing capability. The Tribunal's comparison of analog and digital photocopiers showed that the added digital printing feature did not alter the essential character of the goods. The Court also held that the expression used in the policy was not confined to any particular tariff heading and had to be understood in common parlance with reference to the functionality of the machines. The cited decision on classification did not assist the importer because the present dispute concerned import restriction, not tariff classification.

Conclusion: The imported goods were correctly held to be restricted photocopier machines requiring a licence, and the challenge failed.

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