Assessment of imported second hand machinery - CBEC guidelines
CBEC had issued instructions on valuation of second hand machinery in circular no. dated 12th February 2008. ( - 18.02.2008)
Now the Board has issued fresh guidelines for valuation of imports of second hand machinery:
1. All imports of second hand machinery/used capital goods shall be ordinarily accompanied by an inspection/appraisement report issued by an overseas chartered engineer or equivalent, prepared upon examination of the goods at the place of sale.
2. The report of the chartered engineer or equivalent should be as per the Form A.
3. In the event of the importer failing to procure an overseas report of inspection / appraisement of the goods, he may have the goods inspected by any one of the agencies in India, as are notified by the DGFT;
4. At customs stations where agencies notified by DGFT are not present, importers may continue to avail of the services of locally empaneled chartered engineers.
5. In cases where the report is to be prepared by the agencies in India notified by DGFT or the chartered engineers empaneled by Custom Houses, the same shall be in the Form B.
6. The value declared by the importer shall be examined with respect to the report of the chartered engineer Similarly, the declared value shall be examined with respect to the depreciated value of the goods determined in terms of the circular No. 493/124/86-Cus VI dated 19/11/1987 and dated 4/1/1988. If such comparison does not create any doubt regarding the declared value of the goods, the same may be appraised under rule 3 of the CVR, 2007. If there are significant differences arising from such comparison, Rule 12 of the CVR, 2007 requires that the proper officer shall seek an explanation from the importer justifying the declared value. The proper officer may then evaluate the evidence put forth by the importer and after giving due consideration to factors such as depreciation, refurbishment or reconditioning (if any), and condition of the goods, determine whether the declared transaction value conforms to Rule 3 of CVR, 2007. Otherwise, the proper officer may proceed to determine the value of the goods, sequentially, in terms of rule 4 to 9.
The 2008 Circular is superseded.
CBEC Circular No. 25/2015 in F.No.467/34/2006-CUS.V., Dated October 15, 2015