Customs transaction value cannot be enhanced on undisclosed material; fair disclosure and rebuttal opportunity are mandatory.

Enhancement of customs transaction value cannot be sustained where Revenue relies on DRI alerts and contemporaneous import data without supplying the underlying material to the importer. Adverse material collected behind the assessee's back cannot be used for assessment unless disclosed and a fair opportunity to rebut it is given. On these facts, rejection of the declared value breached natural justice, so the declared transaction value had to be accepted.

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Issues: Whether the enhancement of transaction value in customs assessment could be sustained when the importer was not supplied the material and NIDB data relied upon by Revenue.

Analysis: The enhancement was based on DRI alert and contemporaneous import data, but the importer was not given the underlying material sought to be used against it. Without disclosure of such material, the importer had no effective opportunity to meet the basis of enhancement at the finalisation stage. The Court applied the principle that adverse material collected behind the back of an assessee cannot be used for assessment unless it is disclosed and a fair opportunity to rebut it is afforded. In these facts, rejection of the declared value and consequential enhancement were inconsistent with natural justice.

Conclusion: The enhancement of value was not sustainable and the declared transaction value was required to be accepted.

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