Valuation (Customs) — Enhancement/loading of invoice price
— Appealable order to be issued
Circular No. 16/2003-Cus., dated 17-3-2003
F. No. 467/09/2001-Cus.V
Government of India
Ministry of Finance (Department of Revenue)
Central Board of Excise & Customs, New Delhi
Subject : 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 transmission 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.