Prohibited Goods: cosmetics imported without mandatory regulatory registration are not eligible for warehousing or automatic re export relief.

Imports of cosmetics lacking mandatory CDSCO registration/licence are treated as prohibited goods and not lawfully importable; therefore warehousing and re-export as of right are unavailable where statutory preclearance is absent. The Drugs and Cosmetics regulatory requirements operate as incorporated law for customs purposes, and contravention renders the goods subject to the Customs Act regime for illegal import, permitting seizure under Section 110 and potential confiscation under Section 111. The warehousing route and Section 69 apply only to goods lawfully importable. Factual indicators of mis declaration and undervaluation justified continued investigation and denial of re export relief.

---

---

Issues: Whether the petitioner, having imported cosmetics without required CDSCO registration and having filed warehousing bills of entry, is entitled to re-export the consignments and whether the seizure under Section 110 and potential confiscation under Section 111 of the Customs Act, 1962 is permissible.

Analysis: The import and customs statutory framework applicable to the goods includes the definitions of "imported goods" and "prohibited goods" under Section 2(23) and Section 2(33) of the Customs Act, 1962, the requirements for entry and self-declaration under Section 46 read with Section 17, provisions for warehousing including bond obligations under Section 59, and the statutory route for clearance of warehoused goods for export under Section 69. The Drugs and Cosmetics Act, 1940 and the Cosmetics Rules, 2020 operate as "any other law" incorporated into the Customs code for import regulation; Section 10 of the Drugs and Cosmetics Act and Rules 12, 13, 18-20 of the Cosmetics Rules, 2020 mandate prior registration/import licence for cosmetics and prescribe detention, testing and remedial procedures where regulatory compliance is lacking. Where goods are imported in contravention of a prohibition under the Drugs and Cosmetics Act (i.e., without mandatory registration/licence), such goods fall within the definition of "prohibited goods" (Section 2(33)) and may constitute an "illegal import" (Section 11A(a)), engaging seizure powers (Section 110) and confiscation provisions (Section 111). The warehousing regime and Section 69 operate only in respect of goods lawfully importable and not prohibited; warehousing does not permit importation in breach of other statutory prohibitions. The Court found no reliable material of a prior antecedent intent to import solely for re-export, and the documentary and testimonial record supported the respondents' case of regulatory non-compliance and possible mis-declaration and undervaluation, justifying continued investigation and seizure proceedings.

Conclusion: The petitioner is not entitled to re-export the consignments as a matter of right where mandatory CDSCO registration/licence for import of the cosmetics was absent; the consignments were properly characterized as "prohibited goods" under Section 2(33) of the Customs Act, 1962 read with Section 10 of the Drugs and Cosmetics Act, 1940 and the Cosmetics Rules, 2020, and seizure under Section 110 and potential proceedings under Section 111 of the Customs Act, 1962 are permissible. The petition is rejected.

---