Import of Cars - Cars manufactured in America and transshipped to India via Dubai and Thailand - Whether satisfy policy condition of Imported from country of manufactured - Matter referred to Third Member
By TIOL News Service NEW DELHI, NOV 27, 2012: ONE of the Conditions for import of a new vehicle as per Import Policy ( Chapter 87 in Schedule 1 of the ITC HS) is that the vehicle should have been imported from the country of manufacture. In the instant case, the cars were shipped from USA to India via Dubai and Thailand. it is the argument of revenue that that the car should have been imported from the Country of Origin. The argument that the goods were shipped from USA to UAE to Thailand and then to India and hence the condition is complied is meaningless. For any goods, if the country of manufacture and place of shipment are different there will be evidence that the goods have come from the country of manufacture to the country of shipment. To argue that such proof is enough for complying with the condition virtually renders the condition redundant. The Member (T) held that proving the path of the goods imported is not sufficient to meet the condition that the goods should have been imported from the country of manufacture. It is not for the Tribunal to guess the reason behind the condition and order what would be sufficient compliance with the policy. The Import Policy is formulated having regard to various trade considerations of the country and international obligations. It is not for Tribunal to look into the merits and demerits of the import policy because the Tribunal does not have before it all the facts and constraints that result in a policy. The cars were imported in contravention of the condition that the car should have been imported from the country of manufacture and the cars were rightly confiscated under section 111 (d) of the Customs Act. However, The Member (J) held that the evidences showed that vehicles were originally shipped from USA and reached India via Dubai and Thailand. As such it can be safely concluded that the export of the vehicles originated from 'country of manufacture' and the same have undergone transhipment. The policy terms do not ban such transhipment. The policy requires the vehicles to be imported from country of manufacture. The question required to be decided is as to whether the shipment from the country of manufacture routed through other countries can be said to be an importation not from the country of manufacture. It is noted that the said condition nowhere uses the expression "directly", i.e., directly imported from the country of manufacture without any transhipment . It is not permissible to introduce the expression "directly" in the said condition so as to read the same as "be imported directly from the country of manufacture". In the absence of use of any expression in the policy language, it cannot be held that import of the vehicle has to be directly from the country of manufacture, It is sufficient if the vehicle stands imported from the country of manufacture and reaches the country via transhipment through other countries, especially when it is not the revenue's case that vehicles were used for considerable time in the countries of UAE and Thailand. In as much as there is no doubt about the vehicles having been shipped from the country of manufacture, i.e., USA and having reached India through UAE and Thailand, it cannot be held to be violation of the policy condition. In view of the difference of opinion, the matter is placed before the Third Member. (See 2012-TIOL-1725-CESTAT-DEL)
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