Related-party import valuation fails where comparables are not commercially comparable and price influence is not proven.

In related-party imports, transaction value cannot be rejected unless the revenue shows that the relationship influenced the price and that the comparables used for enhancement are commercially comparable under Rule 5. Here, the price was negotiated on market conditions, while the relied-upon imports were small, sporadic direct imports by actual users and not comparable to the appellant's regular trader imports. The Tribunal held that stray comparative instances and possible personalization costs did not justify loading the assessable value, so rejection of the declared transaction value was unsustainable and assessment had to proceed on that value.

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Issues: Whether the transaction value of SIM cards imported from a related foreign supplier could be rejected and loaded under the Customs Valuation Rules on the ground that the relationship influenced the price and that comparable imports by unrelated buyers justified enhancement.

Analysis: The importers and the foreign supplier were related, but the price was found to be negotiated on a market-driven basis depending on demand, quantity, and commercial conditions. The appellant imported large and regular quantities as a trader for market testing, whereas the alleged comparators were small, sporadic imports by actual users. The Tribunal held that the commercial level was not comparable and that the price difference could also be explained by personalization costs in direct imports by unrelated buyers. In these circumstances, the requirements for applying Rule 5 were not satisfied and the transaction value could not be rejected merely on stray comparative instances.

Conclusion: The rejection of transaction value and the loading of assessable value were not sustainable, and the appeal succeeded.

Final Conclusion: The imported goods were to be assessed on the declared transaction value, with consequential relief to the appellant.

Ratio Decidendi: In related-party imports, transaction value cannot be rejected unless the revenue establishes that the relationship influenced the price and that the comparable imports relied upon are commercially comparable for Rule 5 purposes.

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