Export Valuation - Form for Export Value Declaration - Specified
A concerned Netizen asked me a question last week. "Vide non-tariff notification No. 95/2007-Cus dated 13.09.2007, new export rules has been notified w.e.f 10.10.2007. The Rule 7 of the said Rules stipulates that exporter should submit declaration regarding value of goods in manner specified. It has been noticed that format of declaration for purpose of Rule 7 has not been specified in the Rule. We will be grateful if you guide us as how to submit the declaration at the time of export or we can use same format presently used for clearance of imported goods. Your advice will help us to understand the law."
After consulting with a Customs expert, I informed him,
Yes- No format has been specified for declaration of value in export.
All the export Bills are now being submitted In EDI System. The Annexure for submission of data at the time of filing the Shipping Bill contains a general declaration regarding the correctness of declared details in the Annexure where in apart from the value of the export goods, other particulars are also to be given. Thus, there is no separate "value declaration" which needs to be made, just filling the Annexure itself is sufficient for the purpose.
He then told me, "Thanks. But what about non-EDI shipping bill?."
Now your question is answered Sir, by the Board. They have prescribed the form in the circular.
++ Rule 3 of the said rules also stipulates that the Transaction Value for export goods shall be accepted even where buyer and seller are related, provided that the relationship did not influence the price of the goods.
++ Transaction value is the primary basis for valuation of export goods and the method specified under Rule 3 will be applicable in the vast majority of cases of export by acceptance of declared value. In cases where the transaction value is not accepted, the valuation of the export goods shall be done by application of Rules 4 to 6 sequentially.
++ When an investigation / enquiry is undertaken to determine whether or not the Declared Value should be accepted as Transaction Value, the export consignment shall not be ordinarily detained.
++ Acceptance of transaction value is, however, subject to the provision of Rule 8 which provides for rejection of declared value for the export goods in certain exceptional cases. These are situations where the assessing officer has reasons to doubt the truth or accuracy of the declared value and further enquiry or investigation is needed to determine the appropriate value.
++ While raising doubt about truth or accuracy of the declared value in terms of Rule 8, the proper officer shall issue a query memo specifying reasons for such doubt
++ In a case where transaction value cannot be determined or the declared value is rejected under Rule 8, and export value has to be determined by comparison in terms of Rule 4, the proper officer shall take utmost care in selecting an export product for an in-depth inquiry. The proper officer will make the adjustments objectively on the basis of the relevant factors
++ Where the value has to be determined by Computed value method under Rule 5, the proper officer shall give due consideration to the cost-certificate issued by a Cost Accountant or Chartered Accountant or Government approved Valuer, as produced by the exporter
Rule 7 of the Export Valuation Rules calls for a declaration relating to the value to be filed by the exporter. A declaration format for this purpose has been designed and is enclosed as Annexure-A to the Circular. Care should be taken to ensure that no export consignments are held up for want of such declaration which may for the time being be obtained subsequent to exports. The filing of the declaration along with the shipping bill should however be enforced with effect from 12th November 2007.
CBEC CIRCULAR NO. 37 and , Dated: October 9, 2007