Customs – import and export valuation rules – Board corrects mistakes.
- 21.03.2007 pointed out certain mistakes in the draft valuation rules published by the Board. With a rare and laudable alacrity, Board has corrected all the mistakes pointed out by TIOL and published the corrected draft rules. We had also pointed out that the interpretative notes specified in the Schedule, have not been made public. That schedule is also now published. While congratulating the Board for such fast work, may we point out the following errors in the schedule?
Note to Rule 8
12. It is recognized that the method of valuation provided for in rule 8(3) would normally not be applicable when, as a result of the further processing, the imported goods lose their identity. However there can be instances where, although the identity of the imported goods is lost, the value added by the processing can be determined accurately without unreasonable difficulty. On the other hand, there can also be instances where the imported goods maintain their identity but form such a minor element in the goods sold in the country of importation that the use of this valuation method would be unjustified. In view of the above, each situation of this valuation method would be unjustified. In view of the above, each situation of this type must be considered on a case-by-case basis.
There is some mix up of sentences here.
Note to Rule 9
7. Whether certain goods are "of the same class or kind" as other goods must be determined on a case-by-case basis with reference to the circumstances involved. In determining the usual profits and general expenses under the provisions of rule 9, sales for export to India of the narrowest group or range of goods, which includes the goods being valued, for which the necessary information can be provided, should be examined. For the purposes of rule 11 "goods of the same class or kind" must be from the same country as the goods being valued.
This is perhaps Rule 9
Note to Rule 11
In rule 9(l)(a)(i), the term "buying commissions" means fees paid by an importer to his agent for the service of representing him abroad in the purchase of the goods being valued.
This is perhaps Rule 11.
Rule 11(l)(c)
1. The royalties and licence fees referred to in rule 9(l)(c) may include ……
This is also must be Rule 11(1)(c)
Minor mistakes, no doubt but can create complications in future.
Revised Draft Rules – Import export schedule