Valuation Customs — Determination value of imported goods
in cases where prima facie evidence is available on under valuation
F. No. 467/13/90-Cus. V (ICD), dated 7-5-1990
Government of India
Ministry of Finance (Department of Revenue)
Central Board of Excise & Customs, New Delhi
Customs Valuation Rules, 1988- Determination of Subject
: value of
imported goods in cases where prima facie evidence is available on under
valuation.
The difficulties in determination of the value
of imported goods under the Customs Valuation Rules, 1988 in cases where the
goods, prima
facie, appear to be undervalued have been considered by the Board. It has
been observed that the basic provisions of Section 14(1) of the Customs Act
continue to remain unchanged and provides sufficient authority to disregard the
declared transaction value of imported goods where under valuation is reasonably
suspected and prima
facie evidence is available in spite of the fact that concrete evidence is
not available to established fraud. The prima facie evidence with the Customs Department can be
in the form of published price lists of the manufacturer or the previously
accepted customs values of identical or similar goods in a series of imports at
or about the same time, retrieved from the computer.
If the declared price is substantially lower than the 2.
known prices of the goods then the responsibility to explain the difference to
the satisfaction of the customs authorities is with the importer. If the
importer fails to do so it would be in order to disregard the declared value
after giving reasonable opportunity to the importer to explain his case The
goods may then be valued under the subsequent methods of valuation laid down
under the Rules after rejecting the transaction value method (Rule 4).
In this regard a copy of the order of the CEGAT in the 3.
case of M/s. Delhi
Plastics (vide Order No.137 to 141/88 A dated 11-2-1988) is enclosed. The
Tribunal had confirmed the findings of the Customs authorities in this
particular case even though no concrete evidence was available to establish
fraud. This was also confirmed by the Supreme Court. It is considered that the
conclusions arrived at in this order would still be applicable under the new
valuation Rules. This may be brought to the notice of the Assessing Officers for
guidance.