Customs valuation Rules - CBEC issues instructions
The new section 14 of the Customs Act, 1962 shall come into force with effect from 10-10-2007 in terms of Notification No 93/2007-Customs (NT) dated 13th September, 2007.
The new Import Valuation Rules, i.e., Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 notified vide Notification No 94/2007-Customs (NT) dated 13-9-2007 shall also come into force on 10-10-2007.
The Export Valuation Rules, i.e., Customs Valuation (Determination of Value of Export Goods) Rules, notified vide Notification No 95/2007-Customs (NT) dated 13-9-2007 and the same shall also come into force with effect from 10-10-2007.
A day before these changes come into force, the Board has issued two separate Circulars explaining the provisions of these two sets of Rules.
Import Valuation:
++ Transaction Value has been defined to mean the value referred to in sub-section (1) of section 14 of the Customs Act, 1962.
++ A 'proviso' has been added to Rules 4(1)(a) and 5(1) concerning identical goods and similar goods respectively, to the effect that the value of the goods provisionally assessed under Section 18 of the Customs Act, 1962, shall not be the basis for determining the value of any other goods.
++ An 'Explanation' has been added to Rule 10(1) (erstwhile Rule 9(1)) to clarify that the royalty, licence fee or any other payment for using a process, when they are otherwise includible in terms of Clause (c) or (e) of Rule 10(1), shall be added to the price actually paid or payable, notwithstanding the fact that such goods may be subjected to the said process after their importation
++ An 'Explanation' has been added to Rule 10(2) clarifying that the cost of transport of the imported goods includes ship demurrage charges on chartered vessels, lighterage charges or barge charges.
++ An 'Explanation' has been added to Rule 12 (erstwhile Rule 10A), that this rule as such does not provide a method for determination of value, and that it merely provides a mechanism and procedure for rejection of declared value in certain cases.