Question:

Principle: Import means bringing some consignment into India from a foreign country.
Facts: A consignment from Sri Lanka entered the territorial waters of India. However, this consignment never crossed the Indian custom barrier nor did it enter into the stream of commerce in India.

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For a consignment to be considered as imported in India, it must pass the customs barrier or enter the stream of commerce in India.
Updated On: Aug 18, 2025
  • The consignment will only be imported into India when it enters into the stream of commerce in India.
  • The consignment was not imported into India.
  • The consignment was imported into India.
  • The consignment will only be imported into India when it crosses the Indian custom barrier.
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The Correct Option is C

Solution and Explanation

The principle clearly states that importation involves bringing something into the country, which becomes effective when the consignment enters Indian territory. However, for a consignment to be formally recognized as imported, it must cross the Indian custom barrier or enter the stream of commerce. In this case, the consignment entered the territorial waters of India but did not cross the customs barrier or enter the commerce, thus, it was not considered as fully imported yet.


Option (A) The consignment will only be imported into India when it enters into the stream of commerce in India: This is partially true but the consignment must also cross the customs barrier, making this option incomplete.

Option (B) The consignment was not imported into India: This is incorrect as it was only in the territorial waters, meaning importation has not been completed yet.

Option (D) The consignment will only be imported into India when it crosses the Indian custom barrier: This is also partially correct, but importation does not necessarily need to involve crossing the customs barrier immediately—it is just a condition for full clearance.
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