How are damaged goods to be treated for valuation purposes?
Ans: There may be cases where the entire shipment is found to be totally damaged upon importation. Normally, national legislation provides for re-exportation abandonment or destruction of the damaged goods without any duty liability and hence there would be no need for valuation in such cases. There may be cases where the importer takes delivery of goods that. Are partially damaged or goods having scrap value only. In such cases, since the price paid or payable is not for the damaged goods, the transaction value method is not applicable. However. if only a portion of the goods is damaged, it may be possible to proportionately value the portion of the undamaged goods based on the transaction value. For the damaged goods, the value may be determined either under the deductive value methods or under the fallback method as the other methods may not be applicable. Under the deductive value method, the resale price may be used as the basis of valuation whereas under the fallback method, the
