Commerce Ministry Disallows Movement of Short Supply Pulses from FTWZ to DTA based on Old Court Case from Direct Movement into DTA

· Shift of Items from Restricted to Free – Bill of Entry Date Evidenced on Entry into FTWZ to Prevail Over Entry into DTA when goods became Free

· Entry into DTA not allowed as goods were restricted on old Bill of Entry date when import into FTWZ took place

· Ratio of Raj Grow Impex Case decided by Supreme Court to Apply – Re-export allowed on payment of redemption fine of Re.1 per kilo

(Consumer interest ignored altogether – Rising Pulse price not considered by DGFT)

[Text of the Supreme Court Judgement on Pulse Import available with ABS]

[Ref: No. K-43022/54/2021-SEZ dated 15 September 2021]

Subject : Clearance of imported pulses from SEZ/FTWZ.

I am directed to refer to this department's letter of even number dated 11.08.2021 (copy enclosed) on the subject cited above. This office is in receipt of certain representations seeking re examination of the position stated in the aforesaid letter. Accordingly, the issue has been re-examined. In this context, it is worthwhile to note that the Hon'ble Supreme Court had issued an order on 17.06.2021 in Civil Appeal nos. 2217-2218/2021 filed by Uol & others Vs M/s Raj Grow lmpex LLP & Ors. in connection to clearance of pulses during the period prior to 15.05.2021 i.e. before the change of import policy on the said pulses from 'restricted' to 'free'. This order has been issued w.r.t. certain consignment of pulses which were under the jurisdiction of Additional Commissioner of Customs, Mumbai. In the said order, the Hon'ble Supreme Court, has, inter-alia, directed that the goods in question were to be held liable to absolute confiscation but with a relaxation of allowing re-export within two weeks from the date of order of the Court, on payment of the necessary redemption fine and subject to the importer discharging other statutory obligations.

2. In light of the decision of the Hon'ble Apex Court as stated above, the specific condition w.r.t. the date of Bill of Lading as imposed vide notification dated 15.05.2021 as well as specific clarifications issued by the DGFT and DoR on 25.05.2021 and 27.05.2021 respectively in connection to the said notification wherein the applicability of the condition w.r.t. the date of Bill of Lading was reiterated and the fact that the Bill of Lading is available as part of record on SEZ-Online platform at the time of import of consignments into the SEZ, this department reiterates the position as conveyed vide letter dated 11.08.2021.

3. This issues with the approval of the Competent Authority for necessary compliance.