Customs valuation of used clothing imports: declared value accepted where own contemporaneous imports supported the price.

Declared value of imported old, used and worn clothing intended for fibre recovery could not be enhanced merely because the importer did not produce a manufacturer's invoice or letter of credit. The customs authority's reliance on contemporaneous imports by another importer was unsustainable where it ignored the appellant's own contemporaneous imports of similar goods during the same period, which showed comparable lower prices. On that factual basis, the rejection of the declared value under the Customs Valuation Rules, 1988 was not justified, and the enhancement was set aside while the declared value was accepted.

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Issues: Whether the declared value of the imported old and used worn clothing/rags was liable to be enhanced on the basis of contemporaneous imports under the Customs Valuation Rules, 1988.

Analysis: The goods were old and used worn clothing meant for reclaiming fibre, so the absence of a manufacturer's invoice or letter of credit did not justify rejection of the declared value. The adjudicating authority relied on contemporaneous imports by another importer, but ignored the appellant's own contemporaneous imports during the same period, which showed comparable values. Since the appellant produced several bills of entry reflecting lower prices for similar goods in its own case, the basis adopted for enhancement was not sustainable.

Conclusion: The enhancement of value was set aside and the declared value was accepted.

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