Import Policy restriction on drug salts bars OGL and additional licence import of oxytetracycline hydrochloride.

Oxytetracycline hydrochloride fell within Entry 80 of Appendix 2B of the Import and Export Policy for 1988-91 because the policy treated drugs as including their salts, esters and complexes; as the hydrochloride was the salt of oxytetracycline, it was covered by the restriction. Import under the Open General Licence was unavailable because the OGL permitted raw materials only if they were not covered by Appendices 2, 3, 5 or 8, and the policy exception could not override that exclusion. The additional licence also did not assist, since the relevant entry similarly excluded goods covered by Appendix 2B. Confiscation under customs law was therefore justified.

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Issues: Whether oxytetracycline hydrochloride was covered by Entry 80 of Appendix 2B of the Import and Export Policy for 1988-91 by reason of the rule that the entry includes salts of the drug, and whether the goods could nevertheless be imported as raw material or as a drug intermediate under the Open General Licence or the additional licence.

Analysis: The policy expressly provided in para 22(4) that drugs appearing in Appendices 2 Part B, 3 Part A and 5 include their salts, esters and complexes. On that footing, oxytetracycline hydrochloride, being the salt of oxytetracycline, fell within Appendix 2B. The Open General Licence itself made import of raw materials subject to the condition that the goods were not covered by Appendices 2, 3, 5 and 8, so the policy restriction could not be ignored. The note to Appendix 6 List 8 also excluded items covered by Appendices 2 to 5 and 8, read with the Chapter II clarification. The additional licence did not assist because the relevant entry likewise excluded goods covered by Appendix 2B.

Conclusion: Oxytetracycline hydrochloride was not importable as an OGL item or under the additional licence and its confiscation under the Customs law was justified.

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