Dell appeals against Mumbai Customs Order

Following the Mumbai Customs order, CAO-DC/821/RP/2011-2012 passed by Deputy Commissioner of Customs, special investigation and intelligence branch (import) issued on March 29, Dell India has submitted an appeal and stay application against the passed Mumbai Customs order on April 12.

Mumbai Customs in its order allowed three Indian importers Venktron Digital Systems, Sapphire Micro System and Momentum Technologies to import Dell computers into India on the grounds that the Trade Mark Act, 1999 was not breached.

Without revealing too much over the issue, a Dell spokesperson told The DQ Week, "Yes, we have filed the appeal against the Customs order before the Commissioner of Mumbai Customs."

While going through the submitted appeal ( a copy of which is with The DQ Week) it surfaced that Dell has put forth three reasons before Mumbai Customs, while calling the order 'erroneous and unsustainable'. Dell intended to set aside the order passed by Deputy Commissioner of Customs

on the ground that the order does not follow the principal of law laid down by the various courts and in particular, the decision in the case of Samsung Electronics Vs Kapil Wadhwa with regard to Trademark Infringement Act, 1999.

Apart from this, the company also cited various cases of judgments, wherein the High Court has granted an injunction of trademark in similar factual scenarios and prohibited the import of products in India bearing a trademark registered in India where the importers had not obtained a specific authorization to use the registered Indian trademark.

The company is also seeking an opportunity of personal hearing on an early basis from the Customs as well as wanting to pass a new order that may be deemed fit in light of the facts and circumstances of this case provided by Dell in its appeal.

Consequently, Dell wanted destruction of consignments that was released by the Customs. Also, the company does not want the centralized bond to be enforced or the entralized bank guarantee to be encashed with respect to the demurrage and/or warehousing charges relating to the

importer's consignments.

Speaking to The DQ Week, one of the importers Sandeep Kanwar, CEO, Momentum Technologies said, "Yes, we have received the letter from Customs. In our view we don't see anything new in this appeal. Dell has been repeatedly giving reference to already mentioned cases. We are 

hoping that Mumbai Customs should maintain and stick to its earlier stand. In our next step, along with other importers Venktron and Sapphire, we will be filling a response to this letter in due course of time. Besides Mumbai Customs, the suspension on importing Dell goods are still continuing at Delhi, Kolkata and other ports. With this appeal, the matter will still be pending."

Reacting to this, Shyam Modi of ADCTA said, "At present, importers are in confusion and they have chosen the escape route. This is not a good sign of healthy business environment."