Transitional EXIM Policy protection applied where the consignment was cleared within the prescribed period after the import restriction took effect.

Transitional protection under the EXIM Policy applied where the import restriction came into force on 25-3-1996, the letter of credit had been opened earlier, and the shipment was cleared within the 45-day transitional period. The 45 days were to be counted from the date of imposition of the restriction, not merely from the letter of credit or duty payment date. On that basis, the consignment fell within the transitional provisions, the import restriction was inapplicable, and confiscation and penalty could not be sustained.

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Issues: Whether the appellant was entitled to the benefit of the transitional provisions in the EXIM Policy for the imported goods so as to avoid the import restriction and consequential confiscation and penalty.

Analysis: The relevant restriction under the EXIM Policy came into force on 25-3-1996. The letter of credit had been established before that date, and the shipment was cleared within the transitional period contemplated by the policy. The counting of forty-five days was to be made from the date of imposition of restriction, not from the date of the letter of credit or duty payment alone. On that basis, the import was covered by the transitional protection and the restrictive classification was not applicable to the appellant's consignment.

Conclusion: The appellant was entitled to the benefit of the transitional provisions and the order of confiscation and penalty could not be sustained.

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