Import policy for consumer goods in knocked-down form sustained confiscation, while ambiguity justified relief from penalty.

Quartz table clocks imported as component parts, semi knocked down or completely knocked down form were treated as prohibited consumer goods under the import policy, because the policy expressly extended the prohibition to such forms and the public notice for actual users could not override that restriction. Confiscation was therefore sustained. However, the policy wording was considered unclear and the importer was an actual user, so the penal consequences were moderated: the penalty was set aside and the redemption fine was reduced.

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Issues: Whether quartz table clocks imported in component parts, semi knocked down or completely knocked down form were importable under Open General Licence or were prohibited consumer goods, and whether the confiscation, penalty and redemption fine were sustainable.

Analysis: The import policy treated consumer goods as prohibited, including goods imported in semi knocked down, completely knocked down or ready to assemble form unless covered by licence or an applicable public notice. Parts of a clock do not by themselves satisfy human needs and require assembly before the finished product emerges, so they do not fit the concept of consumer goods when viewed in isolation. However, the policy language expressly excluded consumer goods imported in semi knocked down or completely knocked down condition from permissive construction, and the public notice for actual users could not be read to override that prohibition in relation to finished consumer goods imported in component form. In consequence, the goods were liable to confiscation. At the same time, the wording of the policy was not clear and the importer was an actual user, so the penal consequence warranted relief.

Conclusion: The import was held to be prohibited and confiscation was sustained, but the penalty was set aside and the redemption fine was reduced.

Final Conclusion: The appeal succeeded only to the limited extent of relief against penalty and partial reduction of fine, while the finding of prohibited import and confiscation remained undisturbed.

Ratio Decidendi: When import policy expressly prohibits consumer goods even in semi knocked down or completely knocked down form, the assembling of components into the finished article cannot be treated as permissible further processing, though ambiguity in the policy may justify relief from penalty.

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