Open general licence interpretation favored actual end use, allowing import of a twist wrapping machine for medicinal throat drops.

Import control provisions were read to permit an actual user to bring in capital goods under the open general licence where the machine's end use did not match the stated exclusion. A high speed automatic twist wrapping machine used for medicinal herbal throat drops was treated as outside the exclusion for twist wrappers for confectionery, because the relevant entry turned on the machine's actual use. The import-control authority's clarification was treated as conclusive in case of doubt, and the customs authority could not disregard it by adopting a contrary interpretation. On that basis, the import was valid under the licence and the confiscation and penalty order could not stand.

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Issues: Whether a high speed automatic twist wrapping machine imported for wrapping medicinal herbal throat drops was covered by the open general licence entry excluding only machines for safety razor blades, cigarettes, and twist wrappers for confectionery, and whether the customs authority could disregard the clarification issued by the import-control authority.

Analysis: The scheme under Appendix I Part B and Appendix 6 emphasised import of capital goods by an actual user, and the exclusion in the relevant entry was read as referring to the actual end use of the machine. A machine used for twist wrapping medicinal preparations did not fall within the exclusion for twist wrappers for confectionery. The prior clarification issued by the Joint Chief Controller of Imports and Exports confirmed that the machine could be imported for the petitioner's use, and the import policy handbook stated that such interpretation by the import-control authority was final in case of doubt. The customs authority could not override that clarification by adopting a contrary interpretation.

Conclusion: The import was valid under the open general licence, and the confiscation and penalty order could not stand.

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