Customs - valuation of export goods when declared FOB is more than 150% of value declared in ARE-1
MUMBAI Customs Commissioner yesterday issued some very important instructions to his staff.
FOB more than 150% of value : If the FOB value declared in the shipping bill is found to be more than 150% of the value declared in ARE-1, the matter should be brought to the notice of Dy. / Asstt. Commissioner of Customs in charge of CFS from where the goods are being exported for further verification in this regard. Moreover in case of project exports wherever the FOB value is found to be more than 150% of ARE-1 value, value declared in the ARE-1 must be mentioned in the inspection/examination reports /comments in shipping bills.
ARE-1 not mentioned in Shipping Bill : Wherever ARE-1/ARE-2 is not declared in the shipping bill the officers shall not make any endorsement of shipment on such ARE1/ARE-2 produced subsequently, unless due procedure for amendment of such shipping bill has been followed.
Verification of availment of CENVAT credit : where ARE-1/ARE-2 is mentioned in the shipping bills, the dock officers should ensure that in inspection/examination reports /comments in shipping bills, it has to be compulsorily mentioned as to whether the following are availed:
1. CENVAT Credit;or
2. Notification 21/2004 - Central Excise (N.T) dated 06.09.2004 (Claim for rebate of duty paid on materials used in the manufacture or processing of finished export goods);or
3. Notification 43/2001 - Central Excise (N.T) dated 26.06.2001 (Removal of input material without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, for use in the manufacture or processing of finished export goods)
These measures are to facilitate the trade.