Transaction value for used car imports prevails unless valid grounds exist to reject it under customs valuation rules.

Declared transaction value for used cars imported under the Transfer of Residence Rules could not be discarded where purchase invoices from the country of use were available and no bogus invoicing or deliberate undervaluation was alleged. Under Section 14(1) of the Customs Act and Rule 4(2) of the Customs Valuation Rules, transaction value remains the primary basis unless valid grounds for rejection are established. Rule 8 is only a residual method and could not be used to replace the declared price with the list price or domestic market price of the country of exportation for second-hand cars. On these facts, valuation under Rule 8 was impermissible and the declared purchase price had to be accepted.

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Issues: Whether the declared transaction value of used cars imported under the Transfer of Residence Rules could be discarded and the assessable value determined under Rule 8 of the Customs Valuation Rules, 1988 on the basis of list price and domestic market price.

Analysis: The invoices produced at the time of purchase in the country of use were available, and there was no allegation that they were bogus or that the importers had deliberately undervalued the cars. The valuation scheme under Section 14(1) of the Customs Act, 1962 requires adoption of the transaction value unless the circumstances for rejection under Rule 4(2) are shown. Rule 8, being a residual method, cannot be invoked merely to substitute list price or the domestic market price of the country of exportation, particularly for second-hand cars. The cited authorities also supported the view that Rule 8 was not the proper method on these facts.

Conclusion: The declared purchase price could not be rejected, and valuation under Rule 8 was not permissible on the facts of these appeals.

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