Provisional customs valuation during SVB investigation must follow the Board circular, with excess duty recovery beyond the prescribed deposit impermissible.

During pendency of a Special Valuation Branch investigation, provisional assessment must follow the governing Board circular. The circular permitted retention of only a 1% extra duty deposit, and where provisional assessment continued beyond the stipulated period after reply to the questionnaire, the extra duty deposit had to be discontinued. Continued loading of value and recovery of duty beyond that limit were contrary to the circular and could not be sustained. Imports were to be assessed provisionally at the invoice price without loading, and the excess amount recovered was directed to be refunded.

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Issues: Whether the enhanced valuation of imported goods and the continued insistence on extra duty deposit during pendency of Special Valuation Branch investigation were justified in view of the Board's circular governing provisional assessment.

Analysis: The imported goods were subjected to enhanced value and duty was recovered provisionally, although the importer's case had already been registered for Special Valuation Branch investigation. The circular governing such cases prescribed that only 1% extra duty deposit was to be retained, and that where provisional assessment continued beyond the stipulated period after reply to the questionnaire, the extra duty deposit was to be discontinued. The continued loading of value and recovery beyond the permissible deposit were contrary to the circular instructions and could not be sustained.

Conclusion: The enhancement of value and the recovery of duty in excess of 1% extra duty deposit were held unsustainable. The imports were directed to be assessed provisionally at the invoice price without loading, and the excess amount recovered was directed to be refunded.

Ratio Decidendi: During pendency of Special Valuation Branch investigation, provisional assessment must conform to the governing Board circular, and continued enhancement or recovery beyond the prescribed extra duty deposit is impermissible.

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