Shipment date controls application of later import control order; BIS certification and confiscation were not sustainable.

Imported goods shipped by sea before the Stainless Steel Products (Quality Control Order), 2016 came into force were not subject to the later BIS certification requirement. The relevant import date was the shipment or bill of lading date under the Foreign Trade Policy and Handbook of Procedure, so a January 2017 shipment was outside the scope of an order effective from 7 February 2017. On that basis, the goods could not be treated as prohibited, and confiscation, redemption fine and penalty were not sustainable.

---

---

Issues: Whether the Stainless Steel Products (Quality Control Order), 2016 applied to the imported goods so as to require BIS certification, and whether confiscation, redemption fine and penalty were sustainable when the shipment was made before the order came into force.

Analysis: The shipment date was 13.01.2017 and the Bill of Lading bore a January 2017 date. The Quality Control Order came into force only on 07.02.2017. Under paragraph 2.17 of the Foreign Trade Policy, 2015-2020, the date of import is reckoned with reference to the date of shipment or dispatch, and paragraph 9.11 of the Handbook of Procedure, 2015-20 treats the bill of lading date as the date of shipment for sea transport. Since the goods were shipped before the order became operative, the requirement of BIS certification was not attracted. The goods could not be treated as prohibited on that basis, and the resulting confiscation and penalty could not stand.

Conclusion: The Quality Control Order did not apply to the consignment, BIS certification was not required, and the confiscation, redemption fine and penalty were unsustainable.

Final Conclusion: The impugned order was set aside and the appellant obtained full relief.

Ratio Decidendi: For imported goods carried by sea, the relevant date for applying a subsequently enforced import control order is the shipment or bill of lading date, not the later date of arrival or clearance, where the governing trade policy so provides.

---