Customs valuation must use the lowest comparable import value; enhancement based on highest contemporaneous value and NIDB data failed.

Where declared transaction value is rejected and identical-goods comparisons are used, the lowest available contemporaneous transaction value must be adopted under the valuation rules; enhancement based on the highest available value was therefore unsustainable and was remanded for fresh re-determination on the correct basis. Enhancement of the remaining items based solely on NIDB data was also unsustainable, as such data alone did not provide a legally valid foundation for revaluation in the circumstances. The valuation enhancement for those items was set aside.

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Issues: (i) whether the enhancement of value for 14 items on the basis of the highest contemporaneous import value was sustainable; and (ii) whether the enhancement of value for 11 items based on NIDB data was sustainable.

Issue (i): whether the enhancement of value for 14 items on the basis of the highest contemporaneous import value was sustainable.

Analysis: The declared transaction value had been rejected and the value of identical goods was re-determined with reference to contemporaneous imports. Rule 4(3) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 requires that where more than one transaction value of identical goods is available, the lowest such value must be adopted. The enhancement was made on the highest available contemporaneous value, which was contrary to the valuation rule.

Conclusion: The enhancement for the 14 items on the basis of the highest contemporaneous import value was unsustainable and was set aside, with the matter remanded for re-determination on the basis of the lowest available contemporaneous value.

Issue (ii): whether the enhancement of value for 11 items based on NIDB data was sustainable.

Analysis: The value for the remaining items was enhanced solely on the basis of NIDB data. The valuation method was found to be unsupported because NIDB data, without more, could not form a valid basis for enhancement of import value in the circumstances of the case.

Conclusion: The enhancement for the 11 items based on NIDB data was set aside.

Final Conclusion: The appeals succeeded in part, with the valuation enhancement for 11 items annulled and the valuation for 14 items sent back for fresh re-determination in accordance with the correct comparable-value norm.

Ratio Decidendi: Where transaction value is rejected and identical-goods comparisons are relied upon, the lowest available comparable transaction value must be adopted, and NIDB data alone cannot justify enhancement absent a legally sustainable valuation basis.

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