Customs valuation cannot rest solely on LME quotations where the invoice price closely matches and the variation is explained.

LME quotations may be used as a guide in valuing imported goods, but they cannot be applied rigidly to every transaction. Where the invoice price of cobalt metal briquettes was only marginally lower than the quoted LME price, and the small variation was explained by the time gap between import and quotation, enhancement of assessable value was not justified. The department's attempt to rely solely on LME quotations therefore failed.

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Issues: Whether the assessable value of the imported cobalt metal briquettes could be enhanced solely on the basis of London Metal Exchange quotations.

Analysis: The imported goods were valued by the department with reference to LME quotations for similar cobalt metal briquettes, while the importer's invoice price was only marginally lower. The Tribunal held that LME prices may be relevant as a guide in valuation, but they cannot be rigidly applied to every transaction. On the facts, the difference between the invoice price and the lower LME price was less than 2%, and this small variation was explained by the time gap between the import and the LME quotations.

Conclusion: The enhancement of value was not justified and the department's appeal failed.

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