Provisional release security for non-infringing imported garments may be reduced while a bond secures disputed customs exposure.

Security for provisional release of imported garments not involved in intellectual-property-rights contravention was addressed through a proportionate bank-guarantee requirement. The analysis notes that preferential customs treatment would materially reduce duty on the declared value, while the enhanced valuation remained uncertain. A bond was required to secure the full disputed amount, and the reduced bank guarantee applied only to unbranded goods outside the intellectual-property-rights litigation.

---

---

Issues: Whether the security required for provisional release of imported garments not involved in intellectual-property-rights contravention could be reduced.

Analysis: The duty on the declared value, if preferential treatment under the cited customs notification were extended, was substantially lower than the security originally required. The request concerned only unbranded garments outside the intellectual-property-rights dispute, and the fourfold enhancement of value remained uncertain. The comparable approach of reducing security for provisional release supported a proportionate bank-guarantee requirement while safeguarding the full disputed amount through a bond.

Conclusion: The bank guarantee for provisional release was reduced to Rs.1 crore, with a bond required for Rs.10,47,59,354; release was confined to goods not subject to intellectual-property-rights contravention litigation.

---