Customs valuation and quantity discount: declared import value cannot be enhanced solely on higher prices for smaller identical shipments.

Declared value of imported Acrylamide could not be enhanced merely because invoices for smaller quantities of identical goods from the same origin showed a higher unit price. The stated differential was treated as reasonably explained by quantity discount, and the larger import at a lower CIF price was not enough to justify rejection of the declared value. As a result, enhancement of value was held unjustified and the resulting demand could not be sustained.

---

---

Issues: Whether the declared value of the imported Acrylamide could be enhanced on the basis of invoices showing a higher price for smaller quantities of identical goods of identical origin.

Analysis: The Department relied on two invoices reflecting a price of US $ 1500 per metric tonne CIF for quantities of 5 metric tonnes and 3 metric tonnes. The appellant had imported 30 metric tonnes at US $ 1425 per metric tonne CIF, which was about 5% lower than the reference price. The differential was held to be reasonably attributable to quantity discount, and the smaller invoice quantities did not justify adoption of a higher value for the larger import.

Conclusion: The enhancement of value was not justified and the demand based on such enhancement could not be sustained.

---