Customs valuation by comparable imports: declared transaction value accepted where lower relevant market price could not be ignored.

Customs valuation requires assessable value to reflect the ordinary international price of like goods at the time and place of importation, rather than relying mechanically on the invoice price alone. Where comparable import data is used, differences in shipment dates, quantities and invoice dates must be considered, but relevant market-range evidence may still guide valuation. The lower relevant comparable value under the customs valuation rules cannot be ignored when price material is available. On the facts discussed, the declared transaction value was accepted as the correct assessable value and the Department's enhancement was not sustained.

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Issues: Whether the imported goods were to be valued on the basis of the declared transaction value or by reference to comparable imports under the customs valuation rules, and whether the lowest available comparable price was required to be adopted.

Analysis: The imports were of similar goods from the same country, but the comparable consignments relied upon by the Department differed in shipment dates, quantities and invoice dates. The price evidence showed variation within a market range, and the Court accepted that customs valuation must reflect the price at which such or like goods are ordinarily sold at the time and place of importation, not merely the actual invoice price. In this setting, the comparable import at the relevant time was treated as indicative of the market trend, and the insistence on a higher benchmark was not accepted. The Court also held that where available price material existed, the lower comparable value had to be taken in terms of Rule 5(3) of the Customs Valuation Rules.

Conclusion: The declared transaction value was accepted as the correct assessable value, and the enhancement made by the Department was not sustained.

Final Conclusion: The appeals succeeded and the import valuation was directed to be determined on the basis of the declared value.

Ratio Decidendi: For customs valuation, the assessable value must be determined with reference to the ordinary international price at the time and place of importation, and where comparable price data is used, the lower relevant comparable value cannot be ignored.

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