Provisional release security for non-infringing imported garments reduced while full revenue protection remained secured through bond requirements.

For provisional release of imported garments not implicated in intellectual-property-rights contravention, the required security was considered disproportionate because concessional customs treatment could substantially reduce duty on the declared value and the fourfold value enhancement was not conclusively established at that stage. Revenue interests were preserved by requiring a bond for the full stipulated amount while reducing the bank-guarantee requirement. The eligible non-branded garments were to be released on provisional assessment upon furnishing the reduced bank guarantee and the prescribed bond.

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Issues: Whether the bank-guarantee 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 concessional treatment under the applicable customs notification were available, was substantially lower than the security initially demanded. The request concerned only garments not bearing reputed brands and not affected by intellectual-property-rights issues. The fourfold enhancement of value was not conclusively established at this provisional stage. A comparable decision supported reduction of disproportionate security while preserving revenue interests through a bond for the full stipulated amount.

Conclusion: The bank-guarantee requirement was reduced to Rs.20,00,000, with a bond required for Rs.1,99,31,514; the eligible goods were to be released on provisional assessment upon compliance.

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