Customs Valuation - amended provisions of Customs Act to be effective 10^th October 2007

By Vijay Kumar

The Finance Act, 2007 made certain changes with regard to customs valuation.

1. As per Section 2(41), "value", in relation to any goods, means the value thereof determined in accordance with the provisions of sub-section (1) of section 14.

Now this is changed to read as "sub-section (1) or sub-section (2) of section 14"

Section 14(1) is transaction value and section 14(2) is 'tariff value'.

2. A new Section 14 was inserted in place of the present section 14 to change the value from the deemed value to the transaction value.

3. The present section 156(2)(a) of the Customs Act, gives the Government power to make rules regarding the manner of determining the price of imported goods under sub-section (1A) of section 14.

Now this is changed to the manner of determining the transaction value of the imported goods and export goods under sub-section (1) of section 14;".

All these changes are to take effect from 10^th October 2007.

NOTIFICATION NO. 93/2007 - Cus., (N.T.), Dated: September 10, 2007