The more important question is whether the interpretation given by the customs on the valuation and clearance related provisions is correct? Certainly not. It is pathetic situation that even the top officials of the customs department do not know and understand the customs law and issue such arbitrary clarifications. It is to be noted that in the Kyoto convention to which India is a signatory, it was agreed that the goods in warehouse are as goods as kept beyond a customs territory. Hence the same from that place is to be considered as a high sea sale as the goods are sold before their clearance in domestic market.