I understand that ARE-1 is a document used to remove a excisable/dutiable shipment from the factory premises, however is it mandatory that the value mentioned in the ARE-1 should match the invoice value that is submitted to the customs at the time of Exports?
For Eg: the product value mentioned in the ARE-1 is Rs.5000/-, but the exporter has given the commercial invoice value for Rs.25000/-. would this be acceptable to the customs?
21 February 2011
Normally, value in Rupees is not mentioned on Commercial Invoice. It is in foreign currency. Value mentioned on ARE-1 is in Rupees which is taken from excise invoice prepared for removal of goods. This rupee value is arrived by applying Custom declared monthly exchange rate.
21 February 2011
thanks, the example given was for illustration purpose only. IN the case that i have mentioned above, the ARE-1 mentions a value of INR 5000/-, but the invoice mentions a value of USD 500.
Would this difference in the ARE-1 value and customs invoice value be accepted by customs? If yes or no, please provide me with the relevant act/ notification by the customs/ central excise.
CAclubindia
