Customs valuation by NIDB data fails without proof of contemporaneous similar goods import

Declared transaction value of imported air-conditioners could not be rejected on the basis of NIDB data, because the only matching model reflected a very small import quantity and there was no proof that the goods were comparable in quality or imported at or about the same time. Rule 6 of the Customs Valuation Rules, 1988 applies only where contemporaneous imports of similar goods are established within the valuation framework. In the absence of such evidence, enhancement of value was not justified and the declared transaction value had to be accepted.

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Issues: Whether the declared transaction value of the imported air-conditioners could be rejected and enhanced on the basis of NIDB data and Rule 6 of the Customs Valuation Rules, 1988.

Analysis: The only matching model in the NIDB data related to a very small import quantity, and there was no material to show that the goods were comparable in quality or that the imports were of similar goods at or about the same time. The evidence, therefore, did not establish contemporaneous import of similar goods so as to justify rejection of the declared value under Rule 6, which operates only where the value of similar goods imported at or about the same time is established under the valuation framework.

Conclusion: The declared transaction value could not be discarded and had to be accepted.

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