You can wet sand and polish the polycarbonate housings. They even make kits with (most) all of the stuff you need. And it works. But the problem is that the expensive part is the UV protectant, and that's not included in any of the kits. The housing turned cloudy because the UV coating was wearing out, then you finished it off when you wet sanded it. So it'll get foggy again, and faster than before.
If it is for a WJ, don't bother, it doesn't work on those headlights, or at least the kit I bought didn't work for mine anyway. It made the outside of them smooth as glass, but the foggy haze was on the inside from offgassing of the material. By the way, I wetsanded and polished.
At my shop we sand them down and clear coat them, works damn well..That being said I'd try polishing first, but re-clearing will work unless as said earlier, its on the inside.