Letter of credit construction and import policy effect can create referable questions of law in customs disputes.

Construction and legal effect of a letter of credit can raise a question of law where customs liability turns on the meaning of that document, and the validity of imports under a later import policy can also be a referable legal question when the imports were made during its currency. The majority treated both issues as properly referable under the Customs Act because the disputed imports depended on the legal effect of the letter of credit and the applicable import policy. One Member dissented, viewing the letter of credit issue as factual and not referable. The reference applications were allowed and the questions were referred to the High Court.

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Issues: Whether the questions arising from the Tribunal's order were questions of law referable to the High Court, including the legal effect of the letter of credit and the applicability of the import policy to the disputed imports.

Analysis: The majority held that the construction and legal effect of the letter of credit were matters of law arising from the order, since the validity of the imports depended upon the meaning of that document. It also held that the validity of the additional licences in relation to imports effected after the coming into force of the later import policy raised a question of law, and that the subsequent policy could govern the imports made during its currency. Accordingly, the questions framed were held to be properly referable under the Customs Act.

Conclusion: The reference applications were allowed and the questions of law were referred to the High Court.

Dissenting Opinion: One Member held that the letter of credit and import policy issues were not referable under the Customs Act, that the letter of credit issue was factual, and that the applications should be rejected.

Ratio Decidendi: Where the outcome of customs liability depends on the construction of a letter of credit or the effect of an import policy on the disputed imports, the resulting question can be a referable question of law under the Customs Act.

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