Import classification of microfilm lenses turns on trade meaning, vague notice, and unconsidered technical evidence.

Import classification of microfilm reader lenses turned on whether they were "objectives" under Appendix 3A, entry 549, or components eligible for OGL. The notice was held vague because it gave no reasons for the proposed classification, and the adjudication was deficient because it failed to address the trader's technical and commercial material and withheld the technical appraiser's report. On the merits, "objectives" was read in its common and trade meaning as lenses used in microscopes or telescopes, and the evidence showed the goods were commercially treated as lenses, not objectives. Prior clearances and no substantial policy change supported that view.

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Issues: Whether the imported microfilm lenses were correctly classifiable as "objectives" under Appendix 3A, entry 549 of the Import Policy 1985-88, or were eligible for import under OGL as components; and whether the show cause notice and adjudication were vitiated for vagueness and non-consideration of relevant material.

Analysis: The notice proposing classification under Appendix 3A, entry 549 gave no reasons and was held to be vague. The departmental adjudication did not deal with the appellants' detailed technical and commercial material, and the report of the technical appraiser was not furnished. The record also showed uncertainty in the department, including an unreasoned offer to refer the matter to DGTD. On the merits, the expression "objectives" was accepted in its common and trade meaning as lenses ordinarily used in microscopes or telescopes, while microfilm reader lenses were shown by the evidence to be described commercially as lenses and not as objectives. Prior import clearances and the absence of any substantial policy change were treated as relevant supporting circumstances.

Conclusion: The imported goods were not established to be "objectives" within Appendix 3A, entry 549, and the proceedings were liable to be struck down for want of a proper show cause notice. The appeal was therefore allowed and the impugned order was set aside.

Ratio Decidendi: In import classification disputes, a vague show cause notice and an unreasoned failure to meet the trader's technical and commercial evidence cannot sustain denial of OGL clearance; classification must accord with the common and trade meaning of the goods.

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