Consumer durables classification of fountain submersible pumps failed; industrial actual user imports remained eligible under OGL.

Imported fountain submersible pumps used in manufacturing decorative fountains were not consumer durables under the Import-Export Policy, April 1992-March 1997, because the importer was an industrial actual user, the pumps were small units intended only for fitting into fountains, and they could not be used in their imported condition without further processing. On that basis, the goods did not fall within the policy definition of consumer goods or consumer durables and were eligible for import under OGL without a licence. The commentary also notes that the lower appellate authority relied on part-and-component definitions without addressing the applicable policy classification.

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Issues: Whether fountain submersible pumps and related items imported for use in the manufacture of decorative fountains were consumer durables or consumer goods requiring a licence, or whether they were eligible for import under OGL.

Analysis: The importers held an SSI certificate and were actual users (industrial) for manufacture of decorative fountains. The imported pumps were small units meant only for fitting inside decorative fountains and were not intended for domestic use. They could not be used as such in the condition in which they were imported and required further processing before incorporation into the finished product. On that basis, they did not answer the definition of consumer durables under para 7(12) of the Import-Export Policy, April 1992 - March 1997. The lower appellate authority had relied on the definitions of part and component, but had not addressed whether the goods satisfied the policy definition of consumer goods or consumer durables.

Conclusion: The imported fountain submersible pumps were not consumer durables and were eligible for import under OGL without a licence.

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