Actual shipment date governs licence validity in sea imports; pre-dated bills of lading do not secure duty-free benefit.

For imports under a sea-shipment scheme, licence validity turns on the date of actual shipment, harmonised with the governing handbook provisions, not on the date stated in the bill of lading. Where the vessel reached the loading port only after the licence had expired, the goods were treated as not covered by a subsisting licence, so duty-free clearance was unavailable and confiscation followed. The commentary also notes that redemption fine must remain proportionate to the CIF value, while a deliberately pre-dated bill of lading and absence of proof of actual shipment supported the penalty.

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Issues: (i) Whether the import was covered by a valid licence and entitled to duty-free clearance under the DEEC scheme when the bill of lading pre-dated the vessel's arrival at the loading port; (ii) Whether the redemption fine and penalty were sustainable.

Issue (i): Whether the import was covered by a valid licence and entitled to duty-free clearance under the DEEC scheme when the bill of lading pre-dated the vessel's arrival at the loading port.

Analysis: The validity of the import licence had to be determined with reference to the date of actual shipment, read harmoniously with the relevant handbook provisions governing shipment by sea. The bill of lading could not control the question where the vessel reached the loading port only after the licence had expired. Since the goods could not have been shipped before the vessel's arrival, the import was not covered by a subsisting licence, and the benefit of duty-free clearance was unavailable.

Conclusion: The import was not covered by a valid licence and was rightly held liable to confiscation and denial of duty-free benefit.

Issue (ii): Whether the redemption fine and penalty were sustainable.

Analysis: Although confiscation was upheld, the fine had to be proportionate to the CIF value of the goods. The adjudicating finding that the bill of lading had been deliberately pre-dated was accepted, and the lack of proof of actual shipment supported the penal consequence.

Conclusion: The redemption fine was reduced, but the penalty was sustained.

Final Conclusion: The appeal failed on the merits, with confiscation and penalty maintained, while the redemption fine was brought down to a lower amount.

Ratio Decidendi: For import under a sea shipment scheme, the decisive date for licence validity is the date of actual shipment, not the date shown on the bill of lading; if the licence has expired before actual shipment, the goods are unauthorised and liable to confiscation.

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