Customs Valuation: Rejection of Declared Value Must Be Followed by Proper Substitute Value Determination Under Rules 5-8

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....CESTAT set aside the order rejecting the declared value of imported cloves from Indonesia/Tanzania. While the importer failed to furnish evidence supporting lower valuation, necessitating assessment under rule 10A of Customs Valuation Rules, 1988, the tribunal found that authorities failed to establish a proper substitute value within the framework of rules 5-8. The rejection of declared value must be followed by determination of an acceptable substitute value according to the prescribed methodology. Without establishing such substitute value, the revision of the declared value lacked legal authority. The tribunal determined that rule 8's flexibility was improperly applied, as the 19 bills of entry referenced did not conform to the "surrogate value" scheme in rule 5. Appeal allowed.....