Warehoused goods may be re-exported without duty when they are not prohibited and export conditions under customs law are met.

Warehoused photographic films imported under Open General Licence were treated as re-exportable goods because they were not shown to be prohibited goods and the Customs Act permitted export once the prescribed bill of export was filed, charges were paid, and clearance for export was ordered. The Court found no legal basis to deny re-export merely because the goods had been imported for home consumption or stock and sale, and noted that the statutory framework safeguarded export-value realisation. Re-export without payment of duty was therefore permitted subject to Section 69(1) of the Customs Act, 1962, and an undertaking was accepted in place of a bank guarantee.

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Issues: Whether photographic films imported under Open General Licence and kept in warehouse could be treated as prohibited goods so as to prevent their re-export, and whether they could be allowed to be re-exported without payment of duty.

Analysis: The goods were warehoused on import and the statutory scheme permitted export of warehoused goods where the prescribed bill of export was filed, charges were paid, and clearance for exportation was ordered. The definition of prohibited goods under the Customs Act did not cover goods whose import or export conditions had been complied with. The photographic films were not covered by the export control schedule referred to in the material before the Court, and no provision was shown to establish that goods imported for stock and sale could not be re-exported. The Court also noted that the statutory framework provided safeguards regarding realisation of export value and that re-export would earn foreign exchange. An undertaking regarding property security was accepted in place of a bank guarantee.

Conclusion: The goods were permitted to be re-exported without payment of duty, subject to the requirements of Section 69(1) of the Customs Act, 1962.

Final Conclusion: The order granted interim relief in favour of the petitioner by permitting re-export, while leaving the writ petition for final determination.

Ratio Decidendi: Warehoused goods that are not shown to be prohibited goods may be re-exported under the Customs Act when the statutory conditions for exportation are satisfied, and absence of any legal prohibition against such re-export precludes denial of clearance merely because the goods were originally imported for home consumption or stock and sale.

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