Provisional release security for SAFTA-eligible garments was reduced while a full bond preserved revenue protection pending assessment.

Provisional release security for imported non-branded readymade garments claiming SAFTA concessional-duty benefit was considered disproportionate to the declared-value duty liability. The goods sought to be released were not alleged to infringe intellectual-property rights, and the enhanced valuation based on a fourfold increase had not been conclusively established. Applying a comparable decision, the security was modified proportionately: a reduced bank guarantee was required while a bond for the full originally stipulated amount preserved revenue protection. On compliance with these conditions, the eligible goods were to be released on a provisional-assessment basis.

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Issues: Whether the security required for provisional release of imported non-branded readymade garments claiming SAFTA concessional-duty benefit should be reduced.

Analysis: The declared-value duty liability, if the claimed concessional benefit applied, was substantially lower than the security initially required. The requested release concerned garments not implicated in intellectual-property-rights contravention, while the enhanced valuation was based on a fourfold increase that was not conclusively established at this stage. A comparable decision reducing the security requirement supported a proportionate modification while retaining security through a bond for the full originally stipulated amount.

Conclusion: The bank-guarantee requirement for provisional release of the eligible goods was reduced to Rs.11,00,000, with a bond to be executed for Rs.1,06,48,823; upon compliance, the goods were to be released on provisional assessment basis.

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