Import Policy Coverage for banned defective sheets requires express licence permission, not implied inclusion as packing material.

Defective galvanised sheets, classified as banned iron and steel items under the import policy, could not be imported under REP licences merely because the licences allowed packing material or other export-linked goods. The policy required iron and steel imports to be prime quality unless expressly exempted, and the relevant provisions extended that requirement to REP imports. Appendix 17 did not specifically authorise defective sheets or other banned items, and no express policy permission was shown in the licences relied upon. The result was that the REP licences did not cover the import, and confiscation for lack of valid licence coverage was justified.

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Issues: Whether defective galvanized sheets, being a banned item under the import policy, could be imported under REP licences as packing material or as goods covered by the relevant export-linked entries in Appendix 17.

Analysis: The policy required iron and steel items to be of prime quality unless specifically provided otherwise. Paragraph 51 and paragraph 199(2)(vi) made this requirement applicable even to REP imports, while Appendix 6 item 1 placed seconds, second grades and defectives of zinc-coated or plated sheets, plates, strips and coils in the banned list. Although Appendix 17 permitted import of packing material and certain GP sheets/strips against specified export groups, none of the relevant entries specifically authorised defective sheets or banned items. The policy allowed banned items only where they were expressly mentioned, and no such express permission was shown in the licences relied upon.

Conclusion: The REP licences did not authorise import of the defective sheets, and the confiscation based on lack of valid licence coverage was justified.

Final Conclusion: The appeal failed because the import was not covered by the relevant REP licences under the policy.

Ratio Decidendi: A banned item cannot be imported under an REP licence merely because the licence permits packing material or other linked goods; express policy permission is required for import of defective or banned iron and steel items.

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