Transferability of REP licences limited only to the utilised portion; unutilised value remains transferable under the policy scheme.

Paragraph 204 of the Import and Export Policy made licences used for the import replenishment facility non-transferable only to the extent of the facility actually availed of, because the scheme contemplated endorsement and quantification of the permissible import value. Paragraph 225 then allowed transfer of REP licences in full or in part, and did not exclude transfer of the unutilised balance where the licence had been only partly used under Paragraph 204. The unutilised portion of the REP licence therefore remained transferable, while the utilised portion continued to be non-transferable.

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Issues: Whether a REP licence, after the importer has availed only part of the import replenishment facility under Paragraph 204 of the Import and Export Policy, April 1985 to March 1988, remains transferable in respect of the unutilised value under Paragraph 225.

Analysis: Paragraph 204 grants the special import facility to a manufacturer-exporter, and sub-paragraph (viii) declares the licences used for that facility to be non-transferable. Reading that clause with sub-paragraphs (4), (5) and (7), the restriction is confined to the extent of the facility actually availed of, because the scheme contemplates endorsement and quantification of the permissible import value. Paragraph 225, which permits transfer of REP licences in full or in part except in specified cases, does not exclude transfer of the unutilised portion where the licence has been only partly used under Paragraph 204. A construction that makes the entire licence non-transferable would deprive the other sub-clauses of effect.

Conclusion: The non-transferability under Paragraph 204 applies only to the utilised portion of the licence, and the unutilised value remains transferable under Paragraph 225.

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