Customs confiscation and redemption fine: later warehousing or re-export does not cure illegal import under the prevailing policy.

Imported goods remain under customs control until cleared for home consumption, warehoused or transshipped, and import contrary to the prevailing policy can attract confiscation under the Customs Act. If goods are confiscated and redeemed on payment of fine, later warehousing or re-export does not undo the prior illegality or create a right to refund of the redemption fine. Import entitlement is determined by the policy in force at the time of import, and a later amendment restricting the benefit to ship stores limits the import claim accordingly.

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Issues: Whether imported goods were liable to confiscation and redemption fine under the Customs Act despite being warehoused and later re-exported, and whether the amended import policy and the absence of a licence at the time of import justified the action of the customs authorities.

Analysis: The scheme of the Customs Act was held to show that imported goods remain under customs control until they are cleared for home consumption, warehoused, or transshipped, and that confiscation under Section 111(d) is attracted where import is contrary to a prohibition imposed by law. Once confiscated goods are allowed to be redeemed under Section 125 on payment of redemption fine, the subsequent warehousing or re-export does not erase the prior illegal import or create a right to refund of the fine. The Court further held that entitlement to import is governed by the policy prevailing at the time of import, and the amendment to the Import Control Order had restricted the benefit to import as ship stores only. The cases relied upon by the petitioners were distinguished as dealing with different questions and not with the effect of confiscation followed by redemption and re-export.

Conclusion: The confiscation and redemption fine were upheld, and the challenge to the customs and appellate orders failed.

Ratio Decidendi: Where goods are imported in contravention of the prevailing import policy, they are liable to confiscation and redemption fine, and later warehousing or re-export does not negate the completed illegality or entitle the importer to refund of the fine.

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