Customs Valuation (Determination of Value of Export
Goods) Rules, 2007
Notification No. 95/2007-Customs (N.T.)
1. Short title, commencement and
application.- (1) These rules may be called the Customs
Valuation (Determination of Value of Export Goods) Rules, 2007.
(2) They shall come into force on the 10th
day of October, 2007.
(3) They shall apply to the export goods.
2. Definitions. - (1) In these rules,
unless the context otherwise requires, -
(a) "goods of like kind and quality" means export goods
which are identical or similar in physical characteristics,
quality and reputation as the goods being valued, and perform the
same functions or are commercially interchangeable with the goods
being valued, produced by the same person or a different person;
and
(b) "transaction value" means the value of
export goods within the meaning of sub-section (1) of section 14
of the Customs Act, 1962 (52 of 1962).
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(2)
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For the purposes of these rules, persons shall be
deemed to be "related" only if -
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(i)
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they are officers or directors of one another"s
businesses;
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(ii)
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they are legally recognised partners in business;
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(iii)
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they are employer and employee;
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(iv)
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any person directly or indirectly owns, controls or
holds five per cent or more of the outstanding voting stock
or shares of both of them;
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(v)
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one of them directly or indirectly controls the other;
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(vi)
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both of them are directly or indirectly controlled by a
third person;
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(vii)
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together they directly or indirectly control a third
person; or
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(viii)
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they are members of the same family.
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Explanation I. - The term "person" also
includes legal persons.
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Explanation II. - Persons who are associated in the
business of one another in that one is the sole agent or sole
distributor or sole concessionaire, howsoever described, of
the other shall be deemed to be related for the purpose of
these rules, if they fall within the criteria of this
sub-rule.
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3. Determination of the method of valuation. - (1)
Subject to rule 8, the value of export goods shall be the
transaction value.
(2) The transaction value shall be accepted even where the
buyer and seller are related, provided that the relationship has
not influenced the price.
(3) If the value cannot be determined under the provisions
of sub-rule (1) and sub-rule (2), the value shall be determined
by proceeding sequentially through rules 4 to 6.
4. Determination of export value by comparison.- (1) The value of the export goods shall be
based on the transaction value of goods of like kind and quality
exported at or about the same time to other buyers in the same
destination country of importation or in its absence another
destination country of importation adjusted in accordance with
the provisions of sub-rule (2).
(2) In
determining the value of export goods under sub-rule (1),
the proper officer shall make such adjustments as appear to
him reasonable, taking into consideration the relevant factors,
including-
(i) difference in the dates of exportation,
(ii) difference in commercial levels and quantity
levels,
(iii) difference in composition, quality and design between
the goods to be assessed and the goods with which they are
being compared,
(iv) difference in domestic freight and insurance
charges depending on the place of
exportation.
5. Computed value method. - If the value
cannot be determined under rule 4, it shall be based on a
computed value, which shall include the following:-
(a) cost of production , manufacture or
processing of export goods;
(b) charges, if any, for the design or brand;
(c) an amount towards profit.
6. Residual method. - (1) Subject to
the provisions of rule 3, where the value of the export goods
cannot be determined under the provisions of rules 4 and 5, the
value shall be determined using reasonable means consistent with
the principles and general provisions of these rules provided
that local market price of the export goods may not be the only
basis for determining the value of export goods.
7. Declaration by the exporter.-The exporter
shall furnish a declaration relating to the value of export goods
in the manner specified in this behalf.
8. Rejection of declared value.-(1)
When the proper officer has reason to doubt the truth or accuracy
of the value declared in relation to any export goods, he may ask
the exporter of such goods to furnish further information
including documents or other evidence and if, after
receiving such further information, or in the absence of a
response of such exporter, the proper officer still has
reasonable doubt about the truth or accuracy of the value so
declared, the transaction value shall be deemed to have not been
determined in accordance with sub-rule (1) of rule 3.
2) At the request of an exporter,
the proper officer shall intimate the exporter in writing the
ground for doubting the truth or accuracy of the value declared
in relation to the export goods by such exporter and provide a
reasonable opportunity of being heard, before taking a final
decision under sub-rule (1).
Explanation. - (1) For the removal of doubts, it
is hereby declared that-
(i) This rule by itself does not provide a method for
determination of value, it provides a mechanism and procedure for
rejection of declared value in cases where there is reasonable
doubt that the declared value does not represent the transaction
value; where the declared value is rejected, the
value shall be determined by proceeding sequentially in
accordance with rules 4 to 6.
(ii) The declared value shall be accepted where the proper
officer is satisfied about the truth or accuracy of the declared
value after the said enquiry in consultation with the exporter.
(iii) The proper officer shall have the powers to raise
doubts on the declared value based on certain reasons which may
include -
(a) the significant variation in value at which
goods of like kind and quality exported at or about the same time
in comparable quantities in a comparable commercial transaction
were assessed.
(b) the significantly higher value compared to the market
value of goods of like kind and quality at the time of export.
(c) the misdeclaration of goods in parameters
such as description, quality, quantity, year of manufacture or
production.
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