Customs valuation rules require identical goods from the same country; foreign-origin comparisons cannot justify Rule 5 valuation.

Rule 5 of the Customs Valuation Rules applies only where the comparison is with identical goods, including goods manufactured or produced in the same country as the imported goods. Imported goods manufactured in Indonesia could not be valued by reference to goods manufactured in Taiwan, because goods from a different country do not satisfy the statutory definition of identical goods. The valuation scheme prescribed by the rules had to be followed, and the department could not disregard that framework by using an ineligible comparison. On the stated facts, Rule 5 was inapplicable.

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Issues: Whether Rule 5 of the Customs Valuation Rules could be applied for valuing imported goods by comparing them with goods manufactured in a different country.

Analysis: Rule 5 applies only where the goods relied upon for comparison satisfy the statutory requirement of being identical goods, including the condition that they are manufactured or produced in the same country as the goods being valued. Goods manufactured in Indonesia could not be valued by reference to goods manufactured in Taiwan, because goods from a different country do not meet the definition of identical goods under the valuation rules. The department could not disregard the valuation scheme prescribed by the rules.

Conclusion: Rule 5 was inapplicable on the facts, and the valuation adopted by the appellate authority was ?

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