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Discussion on Valuation and Prices:

14. It is noticed that the report of the Wildlife Inspector referred to in Paragraph 5.1 above is a "preliminary examination report". This report was made after the examination of the baggage of the Petitioners at IGI Airport, Delhi at the time of seizure of the goods on 20.09.2019. The report does not set forth any price/value or grade of the goods seized but identifies the seized goods as "Agarwood 2023:DHC:2846-DB assorted size and shape/different grades of aquilaria malaccensis‖. The OIO does not refer to any "Final Report" or further examination of the seized goods after 20.09.2019.

15.3 As stated above, the SCN adopts the same ―provisional international market value‖ as stated in the Panchnama/Seizure Memos. No clue is provided in the SCN as to the basis of valuation assigned to Agarwood Chips and Agarwood Oil.

16. Although the OIO references the report of the Wildlife Inspector, which sets out that chips of different grades were recovered, there is no reference to the prices assigned to each different grade of Agarwood in the OIO. The same value has been assigned to the entire 120 Kgs seized. The SCN sets forth the valuation of the seized goods and the penalty imposed on each of the Petitioners, based on this ―provisional international market value‖. The OIO only reproduces the valuation as set forth in the SCN, the Panchnama and Seizure Memos and reiterates that the value of the Agarwood Chips is at the rate of Rs. 5,00,000/- per Kg, while the Agarwood Oil is valued at the rate of Rs. 8,00,000/- per Kg.

Total 120 6,00,00,000/- 4.5 36,00,000/- 6,36,00,000/- 1,15,00,000/-

17. The Agarwood Policy also becomes relevant to put the prices of the Agarwood Chips and Agarwood Oil in perspective. Paragraph 4 of the Agarwood Policy sets forth that the market value of the Agarwood Chips ranges from Rs. 15,000/- to Rs. 2,50,000/- per Kg, and market value of Agarwood Oil ranges from Rs.43,000/- to Rs.10,32,000/- per Kg depending on the variety, in India and in the international market, the price of the top quality Agarwood Oil and wood can vary from a few dollars per Kg to over $30,000/-per Kg. The relevant extract is as follows: