Customs valuation must follow the declared invoice price absent evidence of mutual interest or non-arm's-length consideration.

Imported goods were to be valued on the invoice price agreed between buyer and seller unless the department showed mutual interest in the parties' business or that the stated price was not the sole consideration for sale. On the facts, there was no material to displace the contracted price or support an allegation of under-invoicing. The customs valuation therefore had to proceed on the declared invoice value, and the departmental attempt to reject that price failed.

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Issues: Whether the invoice price declared for imported copra could be rejected on the ground of under-invoicing for the purpose of customs valuation.

Analysis: The valuation of imported goods had to proceed on the price at which the seller offered the goods for sale, unless the department established that the buyer had some interest in the business of the seller or that the price was not the sole consideration for the sale. On the facts, there was no material to show any such mutual interest or any reason to disregard the contracted price. The departmental assumption of under-invoicing was therefore unsupported, and the reasoning adopted in the connected matter was accepted as applicable.

Conclusion: The invoice price was to be accepted for valuation, and the allegation of under-invoicing failed.

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