REP licence interpretation permits related imports for exported or manufactured products under the actual user condition.

A REP licence under the Import and Export Policy was interpreted to permit import of raw materials, components, consumables, spares and packing materials related either to the goods exported or to the goods manufactured by the exporter, provided the actual user condition was satisfied. The phrase "products exported or manufactured" in the relevant policy provisions was read disjunctively, and "select product" was treated as referring to export products rather than confining the facility to the exact items exported. A clarification from the competent licensing authority was relied on as confirming that the import items need not match the precise exported product, so the imports were held to fall within the licence coverage.

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Issues: Whether a manufacturer-exporter holding a REP licence could import raw materials and components for use in a separate manufacturing activity when those goods were related to products manufactured by the exporter, and whether the import was covered by the relevant import policy provisions and licensing clarification.

Analysis: Paragraph 138(1) of the Import and Export Policy AM 1984-85 used the expression "products exported or manufactured", which was held to be disjunctive. On that construction, a REP licence holder could import raw materials, components, consumables, spares and packing materials related either to the product exported or to the product manufactured by the exporter, subject to the actual user condition. Paragraph 204(1) of the Import and Export Policy AM 1985-88 was read in the same manner, and the expression "select product" was treated as referring to export products rather than restricting the facility to the exact goods exported. The communication of the Joint Chief Controller of Imports and Exports dated 24.3.86 was also relied upon as confirming that the import items need not necessarily be related to the exact product exported, and the policy clauses giving primacy to such interpretation by the licensing authority were applied.

Conclusion: The imports were covered by the REP licences and the impugned customs order could not be sustained.

Ratio Decidendi: Where the relevant import policy permits import of goods related to the products exported or manufactured by the exporter, the expression is to be construed disjunctively, and an official clarification by the competent licensing authority prevails in determining the scope of the REP licence.

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