Customs valuation must follow the quantity actually received, not the higher documentary quantity shown in import papers.

Customs duty on imported goods is to be assessed on the quantity actually received into the shore tank, because duty attaches to goods that have in fact entered importation and become part of the imported mass. Where goods are lost, pilfered, or otherwise not received, the Customs Act and Customs Valuation Rules do not support levy on a higher documentary quantity shown in the invoice or bill of lading. The operative basis of valuation is therefore the quantity actually imported and received, not the contractual or paper quantity.

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Issues: Whether customs duty on imported goods is to be computed on the quantity shown in the invoice or bill of lading, or on the quantity actually received in the shore tank.

Analysis: Customs duty is chargeable on imported goods at the time and place of importation, and the measure of valuation must reflect the goods that actually become part of the mass of goods within the country. Where imported goods are lost, pilfered, or otherwise not received, no duty can be levied on the quantity that never entered the importer's custody. The statutory scheme under the Customs Act and the Customs Valuation Rules requires valuation to follow the quantity actually imported and received, and not merely the contractual or documentary quantity.

Conclusion: The basis of assessment is the quantity actually received into the shore tank, and the duty demand on the higher documentary quantity is unsustainable.

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