Residual valuation fails where non-contemporaneous invoices and quantity differences do not provide a reliable comparable basis for enhancement.

Enhanced assessable value of imported auto accessories was not sustained under the residual valuation rule because the department relied on non-contemporaneous invoices from Singapore for Taiwan-origin goods, without showing a reliable comparable basis. The invoices involved lower quantities than the imports, and no contemporaneous imports of similar goods were produced to support a consistent higher price trend. In the absence of necessary adjustments for source, timing, and quantity differences, isolated invoices could not justify rejection of the declared value. The enhancement was set aside and assessment was directed on the declared value.

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Issues: Whether the enhancement of assessable value of imported auto accessories could be sustained under the residual valuation rule on the basis of non-contemporaneous invoices from another country of origin.

Analysis: The invoices relied upon by the department were not contemporaneous with the import and were from Singapore suppliers, whereas the goods imported were of Taiwan origin. The quantities in most of the relied upon invoices were lower than the quantities imported, and there was no effective rebuttal of the appellant's contention that this affected price comparison. No contemporary import of similar goods during the intervening period was shown to support a consistent higher trend in values. In these circumstances, the use of isolated invoices without demonstrating a reasonable basis for adjustment did not justify valuation under the residual rule.

Conclusion: The enhancement of value was not legally sustainable and the appellant succeeded on the valuation issue.

Final Conclusion: The order enhancing assessable value was set aside and the import was to be assessed on the declared value.

Ratio Decidendi: Non-contemporaneous invoices from a different source country cannot sustain residual valuation unless the authority shows a reliable comparable basis and makes necessary adjustments for quantity and other relevant differences.

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