Declared value of imported furniture cannot be enhanced on weight difference alone where assessment is by unit

Imported wooden furniture assessed as unit goods under Chapter 9403 89 90 cannot have its declared value enhanced on a pro rata basis merely because physical verification shows a higher actual weight. Where the proforma invoice transaction value is undisputed and the importer's valuation is not shown to be false or suppressed, excess weight alone does not justify loading the invoice price. On those facts, enhancement based only on the weight difference is not legally sustainable, and the related demand, confiscation and penalty fail.

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Issues: Whether the assessable value of imported wooden furniture could be enhanced on a pro rata basis merely because the actual weight found on physical verification was higher than the declared weight, when the goods were assessable on a unit basis under Chapter 9403 89 90 of the Customs Tariff Act, 1975.

Analysis: The declared transaction value in the proforma invoices was not disputed. The imported items were wooden furniture assessable as unit goods and not on weight. Excess weight noticed at examination, by itself, did not alter the declared transaction value or justify loading the invoice price on a pro rata basis. Since the valuation adopted by the importer was not shown to be false or suppressed, enhancement based only on weight difference was not legally sustainable.

Conclusion: The pro rata enhancement of value was unjustified and the demand, confiscation and penalty could not be sustained.

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