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Comperative value for custom duty valuation

13 October 2012

Dear members,

my querry is very general bt i need a support with circulars, case laws etc.. for valuation purpose nder custom, the custoom officcer rejected the transaction value under rule of valuation rules & adopt the vvalue on arm's lenght price... can anyone provide me the support of circulars or case laws where i can convince him that rule 12 need not to be attract in this case..

Asap case laws required,

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6 Replies

Rama Krishnan (MBA) (571 Points)
Replied 13 October 2012

YOUR QUERY IS INCOMPLETE.. WHY THE TRANSACTION VALUE IS REJECTED?? IF CUSTOMS REJECT TRANSACTION VALUE THEY GIVE JUSTIFICATION FOR IT....

IS THE COMPANIES REALTED??

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vanisha mittal (CA) (88 Points)
Replied 13 October 2012

Mr Rama Krishan ji

authority rejected the transaction value because they compare the value with NIDB data available with them in the month of january though the actual export is in month if july, the find the variation in the price so they rrejectd the transaction value undder rule 12 and adopted arm's length price frm the data available wid them withought adjusting the difference of time, rate, product discripttion, bulk etc, so i need the supportive for comperative price in form of case laws or circulars,

i can provide my mail id if anyone does hv dat supporting, in case not possible to post here

Rama Krishnan (MBA) (571 Points)
Replied 13 October 2012

1. NIDB IS NATIONAL IMPORT DATA BASE WHICH DIRECTORATE OF VALUATION PROVIDE TO FIELD FORMATION TO ASSERTAIN THE CORRECT VALUE OF GOODS. CIRUCLR TO THIS EFFECT ENCLOSED.

YOU CAN TAKE PH OR SPEAKING ORDER FROM CUSTOMS AND THEREAFTER SEEK NIDB PRICE OF CURRENT MONTH. THINK IF THE IMPORT PRICES ARE CORRECT, THEN THE NIDB WILL ALSO SHOW RELATIVELY SAME PRICE IN CURRENT PERIOD.

F.NO. 467/09/2001-CUS.TU Government of India Ministry of Finance & Company Affairs Department of Revenue (Central Board of Excise and Customs) New Delhi

CIRCULAR No.16/2003-CUS Dated 17th March,2003

Enhancement / Loading on invoice price - regarding It has come to the notice of the Board that the Customs field formation(s) are arbitrarily enhancing the invoice value of imported goods without giving a speaking order. Under Rule 10A of Customs Valuation Rules 1988, the Customs Officer may reject the declared value in cases where under-valuation is reasonably suspected, based on evidence of contemporaneous prices. Such prices are being made available by the Directorate of Valuation through the weekly transmissions of NIDB data and monthly Valuation Bulletins. It may not be out of place to mention here that the proper officer should follow the procedure laid down under Rule 10A of Customs Valuation Rules, 1988 to satisfy himself about the possible under-valuation. He should then intimate the importer in writing the ground for doubting the truth or accuracy of the value declared in relation to the goods imported and also provide a reasonable opportunity of being heard, before rejecting the declared value. In view of the above, all the officers in your jurisdiction may be intimated that where declared value is rejected, an appealable order should be issued to the importer after following the due process of law. Sd/. (N.J.Kumaresh) Under Secretary to the Government of India

vanisha mittal (CA) (88 Points)
Replied 13 October 2012

Mr Rama krishnan ji,

have gonne thru this circular, bt my question is if authority is rejecting the value under rule 12 nd doing the valuation under rule 5, the i wantd to support with case laws that though the comperative values exists in terms of goods, time, qtty etc bt my transaction value cannot be rejected in dat case though m providing all the supporting bill of entry, POs etc..