How are sub-standard goods, off-grade materials, seconds, rejects, defectives and scrap to be valued?
Ans: The ACV has no special provision for the valuation of these types of goods, imports of which are usually noticed in developing countries. Normally. if there is no doubt about the description of the imported material and the transaction is genuine, valuation can be done by the transaction value method. However, at times, prime goods are mis-declared or customs officers entertain a reasonable doubt about the truth and accuracy of the declared value. In such cases. one of the other methods of valuation has to be adopted. Usually it is difficult to find goods which are identical or similar to such goods. In the case of scrap. some varieties are at times graded according to international specifications developed by the concerned trade associations and it may be possible to find comparable goods of same specification. The deductive method of valuation can be used where such goods imported by traders are resold after importation. Where no other methods apply, recourse has to be taken to
