Customs valuation of imported vessels cannot be reduced by a post-import price addendum absent a contractual price-variation clause.

A post-import reduction in price under an addendum could not be used to lower the assessable value of imported vessels where the original memorandum contemplated sale on an as-is-where-is basis, the imported items matched the contracted items, no price-variation clause existed, and there was no pre-import dispute justifying a revised contract price. The later price reduction was therefore not a legally acceptable basis for reassessment of customs value, and the challenge to the lower orders failed.

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Issues: Whether a reduction in price effected by an addendum executed after import could be taken into account for determining the assessable value of the imported vessels under customs law.

Analysis: The original memorandum of agreement contemplated sale of the vessels on an as-is-where-is basis, and the record showed no discrepancy between the contracted items and the items imported. There was no change in light displacement tonnage and no dispute arising before import that could justify arbitration or a revised contract price. The agreement did not contain any price-variation clause, and the subsequent reduction in price was incorporated only after completion of import. In these circumstances, the post-import addendum did not furnish a legally acceptable basis for lowering the assessable value.

Conclusion: The post-import price reduction was not relevant for reassessing the value of the imported goods, and the challenge to the orders below failed.

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