Defective import goods and redemption fine: re-export or replacement may be considered, and absolute confiscation needs proper justification.

Imported cloves found unfit for human consumption were treated as confiscable, but the import policy allowed consideration of re-export and replacement of defective goods where there was no indication that sub-standard goods were intentionally ordered. The discussion therefore supports confiscation while recognising that the request for re-export and replacement may be examined under the Handbook and disposed of according to law. On cassia, absolute confiscation was considered unwarranted because similar goods had been allowed redemption in comparable matters and no special reason justified a harsher course. The appropriate course was to permit redemption on payment of a suitable fine.

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Issues: (i) whether the absolute confiscation of cloves liable to confiscation as unfit for human consumption should be upheld, and whether re-export and replacement of the defective goods could be considered under the import policy; (ii) whether the absolute confiscation of cassia should be sustained or the importer should be given an option to redeem the goods on payment of fine.

Issue (i): whether the absolute confiscation of cloves liable to confiscation as unfit for human consumption should be upheld, and whether re-export and replacement of the defective goods could be considered under the import policy.

Analysis: The cloves were found unfit for human consumption on test and their confiscability was not disputed. The plea for relief was confined to the fact that the supplier was willing to take back the goods and replace them free of charge. The relevant import policy permitted consideration of re-export and replacement of defective goods, and there was nothing on record to show that sub-standard goods had been intentionally ordered by the importer.

Conclusion: The confiscation of the cloves was upheld, but the lower authority was directed to consider the request for re-export and replacement under paragraph 80 of the Handbook and pass appropriate orders under law.

Issue (ii): whether the absolute confiscation of cassia should be sustained or the importer should be given an option to redeem the goods on payment of fine.

Analysis: The record showed that in a comparable matter the Tribunal had permitted redemption of similar goods, and no special reason was recorded for adopting a harsher course of absolute confiscation in the present case. In these circumstances, absolute confiscation was found unwarranted.

Conclusion: The importer was directed to be given an option to redeem the cassia on payment of a suitable redemption fine under law.

Final Conclusion: The confiscation of the cloves was maintained, but the importer was granted consideration of re-export and replacement, while the cassia was ordered to be releasable on redemption fine, resulting in only partial relief to the importer.

Ratio Decidendi: Where confiscated imported goods are defective but the governing import policy permits re-export and replacement, such relief may be considered even while confiscation is sustained; and absolute confiscation of imported goods should not be imposed without adequate justification when redemption on fine is a permissible and consistently adopted course.

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