Verified certificate of origin supports provisional release of imported goods, subject to revenue safeguards.

A verified certificate of origin issued by the competent foreign authority supported provisional release of imported areca nuts, and the customs objection based on doubts about origin documentation was not sustained where no recorded request for further information was shown. The court held that, although the proper officer may seek additional information after verification under the trade framework, continued detention was not justified on the material before it. Provisional release was therefore permitted, subject to revenue safeguards by way of an indemnity bond for the full duty payable and a bank guarantee for 10% of the customs duty until assessment was completed.

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Issues: Whether the petitioner was entitled to provisional release of the imported areca nuts under the trade agreement framework despite the customs authorities' objection based on alleged doubts regarding the certificate of origin and a request for additional information.

Analysis: The goods were covered by a certificate of origin issued by the competent Sri Lankan authority and that certificate was subsequently verified by the Department of Commerce, Government of Sri Lanka as having been digitally signed by the authorised officer. The communication relied on by the customs authorities from the exporter did not name the petitioner, and the request for further information was not placed on record. While Rule 6(2) permits the proper officer to seek additional information after verification, the material on record did not justify continued detention of the goods. At the same time, revenue interests required limited protective conditions.

Conclusion: The petitioner was entitled to provisional release of the goods, subject to furnishing an indemnity bond for 100% of the duty payable, and a bank guarantee for 10% of the customs duty, until assessment was concluded.

Ratio Decidendi: Where a certificate of origin issued by the competent foreign authority is verified as genuine and the customs objection is unsupported by a recorded request for further information, provisional release may be ordered subject to suitable revenue safeguards.

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