UTES OF THE

DIRECTORATE GENERAL OF VALUATION, MUMBAI

 

Minutes of meeting with other Directorates held on 21.03.05.

 

A meeting was held in the Directorate General of Valuation on 21st March 2005 to discuss the issues concerning customs valuation as per the agenda circulated vide F.No.Val/Policy/7/05 dated 23rd February, 2005.  The following officers attended the meeting:-

 

1.                   Shri S.S. Renjhen, Director General (Valuation), Mumbai.

2.                   Shri N. Sasidharan, Commissioner (Valuation), Mumbai.

3.                   Shri R. M. Ramchandani, Additional Director General, Directorate General of Audit, Mumbai.

4.                   Shri S.B. Singh, Additional Director General, Directorate General of Revenue Intelligence, Mumbai.

5.                   Shri. Arun Sahu, Additional Director General, Directorate General of Systems & Data Management, New Delhi.

6.                   Smt. Neerja Shah, Additional Director General, Directorate General of
Vigilance, Mumbai

7.                   Shri Praveen Jain, Additional Director General, Directorate General of Export Promotion, New Delhi

8.                   Shri P.K. Sinha, Joint Director, Directorate General of Inspection, Mumbai;

9.                   Shri Harcharan singh, Commissioner, Central Economic Intelligence Bureau, New Delhi;

10.               Smt. Seema Arora, Addl. Commr. (Valuation), Mumbai.

11.               Shri S.K. Rahman, Joint Commissioner (Valuation), Mumbai.

12.               Shir M. Srihari Rao, Joint Commissioner, Directorate General of Valuation, Bangalore;

13.               Shri R.R. Bangar, Asst. Commissioner (Valuation), Mumbai.

 

2.         Shri S.S. Renjhen, Director General of Valuation, welcomed the participants and explained the objective of the meeting.  He said that the Directorate (DOV) had made several initiatives for providing valuation tools and guidance to field formations and had been monitoring the valuation trends and practices to achieve uniformity.  It was felt necessary to have a coordinated approach on Valuation related issues handled by different Directorates to achieve optimum results. It was also felt appropriate to have a regular mechanism for interaction at senior levels with different Directorates.

 

3.         The meeting started with a presentation by the Directorate highlighting the initiatives taken by the DOV in the area of Customs valuation.  The presentation also focused on the issues requiring urgent attention and provided the brief for discussion on the Agenda points. A Brochure containing the relevant information and documents for discussion in the meeting was also distributed to the participants.


 

 

4.         The various interventions during the meeting are summarized below.

 

(i)                   D.R.I : The ADG, DRI stated that his organisation had also developed a data base (Intelligence Support System) based on import/export data from EDI stations and that it is used for various types of intelligence analysis.  Access to this data base is presently restricted to DRI officials.  A modified version will be made available to field formations shortly for restricted access.  Another database on offence data (DRIPS) developed by DRI was also in use on an experimental basis and its extension to field formations data is under active consideration.

ADG, DRI also referred to the Website being maintained by his organisation giving details of fraud cases detected and related matters.  He said that the access to such information on the Website is on password basis and permission could be obtained for accessing the information by Senior officers of other Directorates.  He also called for regular co-ordination between DRI and DOV on Valuation fraud related matters. 

 

(ii)                 Vigilance: The ADG, Vigilance said that NIDB data and DOV valuation Alerts were extensively being used by her organisation to track down possible cases of under valuation having vigilance angle. She supported the idea of regular coordination among the Directorates on valuation related activities.

 

(iii)                Audit:  The ADG, Audit said his organisation carried out quality assurance review of Central Excise Audits conducted under EA 2000.  He found there were several valuation issues which could be shared with DOV.  His office had found NIDB very useful for certain valuation analysis.  He also expressed interest in other areas of work by DOV and agreed that stronger coordination was desirable. 

 

(iv)                Systems:  The ADG, Systems said that closer coordination already existed between Directorate of Systems and DOV in the development of NIDB.  Improving data quality is another area where both the Directorates are keenly interested from the angle of NIDB and the Risk Management System (RMS).  Introducing standard Unit of Quantity is another area jointly pursued by both the Directorates.  He also strongly supported the coordination of valuation related work among all Directorates.

 

(v)                  Inspection: The JD (Inspection) said that copies of Reports on Valuation  Inspections done by DOV would be of interest to Directorate General of Inspection. He has also agreed that the Valuation related paragraphs of the inspections conducted by his Directorate could be sent to DOV. He also stated that the valuation related Standing Orders being followed by various Custom Houses should be reviewed by DOV.

 

 

5.   The Commissioner (Valuation) summed up the discussion and stated that there was a general consensus among the participants for regular coordination of valuation related work among the Directorates.  It was, therefore, appropriate to agree upon on a mechanism for that purpose with DOV as the nodal point, especially for exchange of information and interaction at appropriate levels. The following arrangements were agreed upon after discussions :

 

(i)      Access to relevant data bases and publication for valuation related information:-

The user ID and Password of DOV website will be given be given to all the Directorates upon written request and designation of officers for authorised access. All the Directorates will be added to the mailing list of Valuation Bulletin being published by DOV on monthly basis. Similarly other Directorates will forward copies of their publications to DOV. DOV will also be provided access to the DRI website and its databases upon request.

 

(ii)     Details of under valuation cases detected:

The DRI will workout a structured mechanism of exchanging details of  valuation fraud cases detected on regular basis with DOV.  This would include access to related areas of DRI Website. 

 

(iii)               Details of sensitive commodities:

The DOV will be providing the list of sensitive commodities ( from the point of view of valuation) prepared by it from time to time for NIDB and ECDB purposes to other Directorates.

 

(iv)                Forum for regular interaction:

It was decided to have regular meeting with all the relevant Directorates once in three months.  In view of common issues involved,, it would be combined with the quarterly meeting of Chief Commissioner of Mumbai Zones.

 

6.         The meeting adjourned expressing appreciation for the work accomplished.


F.No.Val/Policy/7/05                                                                  Mumbai, 30th March, 2005

 

 

            Kindly find enclosed the minutes of meeting held in this Directorate on 21.03.05.

 

 

  N. SASIDHARAN

                                                                                    COMMISSIONER (VALUATION)

Encl. : As above

 

 

(i)                   Shri R. M. Ramchandani, Additional Director General, Directorate General of Audit, Mumbai.

 

(ii)                 Shri S.B. Singh, Additional Director General, Directorate General of Revenue Intelligence, Mumbai.

 

(iii)                Shri. Arun Sahu, Additional Director General, Directorate General of Systems Systems & Data Management, New Delhi.

 

(iv)                Smt. Neerja Shah, Additional Director General, Directorate General of
Vigilance, Mumbai.

 

(v)                  Shri Praveen Jain, Additional Director General, Directorate General of Export Promotion, New Delhi.

 

(vi)                Shri P.K. Sinha, Joint Director, Directorate General of Inspection, Mumbai.

 

(vii)               Shri Harcharan singh, Commissioner, Central Economic Intelligence Bureau, New Delhi.

 

(viii)             Shir M. Srihari Rao, Joint Commissioner, Directorate General of Valuation, Bangalore.

 

DRAFT

 

D.O. F.No. VAL/TECH/87/2004                                           Mumbai, 28th March 2005

 

 

Dear Shri

 

            Pursuant to a representation from the trade stating that there is a huge import of Chinese Tyres (new) for buses and trucks into India at undervalued prices, the DOV has conducted a study of valuation trend of this commodity. The study revealed that there is  wide variation in assessed values of imported Chinese Tyres. It is also noticed from NIDB data that the importers do not declare the full description and specifications (such as type and size)  and **that the different Unit Quantity Code (UQC) are declared making it difficult to make any comparison of prices.

 

2.         While we are making efforts to capture detailed information on imported tyres, ** of reliable international price information is causing difficulties in the survey.  We have not been able to lay down any publication giving international prices of Chinese Tyres (new) for buses and trucks. Hence, it is requested that you may please enquire the export prices (FOB prices) of these Chinese Tyres. It is noticed that the major suppliers exporting Chinese Tyres (new) for buses and trucks into India are as follows:

a)       M/s. Michelin Asia Pacific Import-Export

b)       M/s. Federal Corporations

c)       AL DOBOWI Tyre Co. LLC

d)       Guangzhou Pearl River Rubber Tyre

e)       Qingdao Fuyuan Tyres Co. Ltd.

 

3.         It will be highly appreciated if you could procure standard price lists of these suppliers and forward it to us urgently.

 

            With Yours

                                                                                    N. SASIDHARAN

                                                                        COMMISSIONER (VALUATION)

 

Shri T. Jayaraman,

Consul (Economic),

Consulate General of India,

Hongkong.