Bulk liquid cargo valuation must follow actual shore tank quantity, not invoice figures, for customs duty assessment.

In bulk liquid cargo imports, customs valuation and duty are to be based on the quantity actually received in the shore tank, because duty is levied on goods imported at the time and place of importation and the valuation scheme under the Customs Act and Customs Valuation Rules must reflect the goods actually imported. The prior Supreme Court ruling and the later Board circular both supported this approach, so assessment on the invoiced quantity could not be sustained and the impugned demands failed.

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Issues: Whether, in the case of bulk liquid cargo, the assessable value and duty are to be determined on the basis of the quantity shown in the import invoices and related documents or on the basis of the actual quantity received in the shore tank.

Analysis: The governing principle is that customs duty is levied on imported goods at the time and place of importation, and the statutory scheme under the Customs Act and the Customs Valuation Rules requires valuation to reflect the goods actually imported. The prior Supreme Court ruling on bulk liquid cargo held that the quantity actually received into the shore tank is the proper basis for customs duty, and the later Board circular adopted the same position. The earlier view sustaining duty on the invoiced quantity could not be maintained in light of that legal position.

Conclusion: The actual quantity received in the shore tank is the basis for assessment, not the quantity stated in the import documents; the impugned demands could not be sustained.

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