Minutes of the Conference of Chief Commissioners meeting

held at Mumbai Custom House on 01.10.2005

 

            The meeting of the Chief Commissioners of Customs on Valuation was held at Mumbai on 01.10.05 under the Chairmanship of Member (Customs and RI & I), CBEC.  The following officers participated in the meeting. 

1.       Shri S. Basu, Chief Commissioner of Customs, Kolkata.

2.       Shri Ramesh Ramachandra, Chief Commissioner of Customs, New Delhi.

3.       Shri Devendra Dutt, Chief Commissioner of Customs, Ahmedabad.

4.       Shri K.M. Tiwari, Chief Commissioner of Customs, Mumbai – I  & III Zone.

5.       Shri P.C. Jha, Chief Commissioner of Customs, Mumbai – II Zone.

6.       Shri K.K. Agarwal, Director General (Valuation), Mumbai.

7.       Shri J.K. Batra, Chief Commissioner of Customs, Chennai.

8.       Ms. Kameswari Subramanian, Joint Secretary (Customs) CBEC, New Delhi.

9.       Shri S.Dutt Majumder, Commissioner (Valuation) Designate.

10.   Shri N. Sasidharan, Commissioner, DGOV, Mumbai.

11.   Shri A.K. Prasad, Commissioner (Import), Mumbai – I Zone.

12.   Smt. S. Panda, Commissioner, Air Cargo Complex, Mumbai.

13.   Shri Najib Shah, Commisioner, Nhava Sheva.

14.   Shri M.K. Singh, Director (ICD), CBEC, New Delhi.

 

2.         The conference discussed the issues as per the Agenda items A to H.  Certain additional points were also submitted by the Chief Commissioners of Customs Mumbai I and Mumbai II. Due to short time available, these additional points were discussed in a general way as summarized at the concluding portion of the minutes.  The brief of Agenda points discussed in the conference is at Annexure I.

3.         Summary of the discussion and conclusions in respect of each of the Agenda points are set out below.

Agenda Point No. A (i) :

Issue of inclusion of demurrage (ship detention) charges (after 2.3.2001) in the assessable value of the imported goods;

Summary of Discussion :-

The conference felt that demurrage (ship detention) charges should be included in the assessable value of imported goods as part of transportation charges in terms of the Customs Valuation Rules, 1988.  The international practice in the context of movement of trucks between European Community (EC) and non- EC countries was also cited in support of this view. However, in view of the Supreme Courts order dated 17.02.2004 (2004(165) ELT 257(SC)) it was not feasible to apply this for the imports prior to 02.03.2001, the period when the Board’s Circular dated 14.08.91 was effective.  It was also noted that the review petition filed by the Department was dismissed by the Supreme Court vide order dated 02.03.2001 on the grounds of delay and without detailed findings on merits of the issue involved.  It was, therefore, felt appropriate to have a legal amendment to avoid conflict with the judicial pronouncements.  It was also felt that the amendment should apply to cases of importation after 02.03.01 only.  This would facilitate immediate finalization of all provisional assessments on this issue, by not including these charges in respect of importations prior to 2.3.01.

Decision : 

            It was decided to insert an Explanation to Rule 9(2) of the Customs Valuation Rules 1988 to the effect that demurrage (ship detention) charges on chartered vessels should form part of the transportation cost specified in the said rule.  It was also decided that this Explanation should be made effective from 02.03.01 by way of a provision to that effect in the Finance Bill.

(Action:  Board)

Agenda Point No. A (ii):

Finalization of assessments pending on the issue of determination of the quantity (Shore tank v/s Ship Ullage quantity) for assessments of the imported bulk liquid cargo;

 

Summary of Discussion :-

It was noted that the Conference of Chief Commissioners on Valuation in August 2003 had considered this question at length, and decided that valuation of such goods should be based on the invoice price which is a price paid or payable for the goods imported (transaction value) irrespective of the quantity ascertained through shore tank measurement or any other manner.

            It was noted that this decision would not run into conflict with the Supreme Court Order dated 20.02.2002 in the case of NOCIL in Civil Appeal No.6764/1999.  In cases where duty is leviable on ad-valorem basis it was perfectly in order to follow the Customs Valuation Rules.  However, if the duty is leviable at specific rates based on the quantity then it would be necessary to take the quantity measured in the shore tanks.  It was noted that provisional assessments were pending in several cases and that the CVD leviable on those goods at the relevant time was specific rate of duty based on quantity.

            It was also noted that the above view would not amount to double taxation in conflict to the action taken for short landing under Section 116 of the Customs Act.  In respect of imports made in the same vessel for different ports, the decision of the conference of August 2003 was reiterated to the effect that the quantity should be apportioned between different customs stations based on the quantity to be discharged as per the Bill of Lading.

Decision :-

(a)        It was decided that all provisional assessments should be finalized on the basis of invoice value as was decided in the aforesaid Conference of August 2003.   Wherever the CVD was leviable at specific rate, quantity determined during the shore tank measurement should be accepted.  In respect of delivery at more than one port the quantity should be apportioned based on the quantity intended to be discharged at a relevant port(s).  The question of action for short landing under Section 116 of the Customs Act will not arise in cases where shortage have been found and the duty has been levied on the invoice quantity.  A circular to this effect would need to be issued by Board.

(Action:  Board)

Agenda Point No. A (iii) :

Computation of freight of time chartered/daughter vessel and its inclusion in the assessable value as extended cost of transportaion.

 

Summary of discussion :-

The conference agreed with the recommendations of the DGOV contained in the letter F.No.Val/Tech/8/2002 dated 27.10.03 that the recommendations of the
Shri R. K. Chakroborti Committee should be accepted and that pending cases of assessments should be finalized as per the two alternative methods of computation of cost of transportation for daughter / time chartered vessel proposed by the Directorate.  The first option which is based on the World Scale norms duly adjusted on the basis of World Scale Freight Rates (AFRA), published by the World Scale Association should be followed wherever the World Scale rates are available for the transportation between high seas and the respective minor ports in India.  In cases where the World Scale Freight Rate index is not available the cost element required for arriving at the freight rate may be based on the yard stick used by the World Scale Association.  In both cases wharfage and transshipment charges recommended by the Committee should be added to arrive at the total freight.  It was also made clear that the data in respect of these calculations should be submitted by the respective importers to the satisfaction of the assessing officer.  Accepting services by the Cost Accountant’s may also be considered by the respective Commissionerates depending upon the extent of complexity of the case.

            In this regard it was noted that major imports of bulk crude oil are presently taking place at Vadinar and Sikka ports in Gujarat.  The Chief Commissioner of Ahmedabad was requested to ascertain from the concerned importers regarding the availability of information required for the finalization of the assessment on the above basis, and to report to the Board in case of difficulty.  

Decision :-

(a)        All pending cases of Crude Oil imports involving lighterage charges decision would be finalized on the basis of World Scale norms and AFRA wherever available.  In case of minor ports where details are not available the calculation shall be based on the case element used for arriving at the World Scale Freight Rate.  Necessary instructions in this regard will be issued by the Board.  The DGOV was asked to prepare a draft circular and submit it to the Board.

 (Action:  Board & DGOV)

AGENDA POINT No. B :

 

Fixation of Tariff Values in respect of Sensitive Commodities

 

Summary of discussion :-

The question of WTO compliance of Tariff Values was discussed.  It was noted that the matter was debated in detail in the Board’s office at the time of introducing Tariff value for Palm Oil products in August 2001, and that legal opinion was also taken confirming that the system of fixing Tariff value was not in contradiction with the provisions of the WTO Agreement on Customs Valuation.   The house was also informed that even the European Community (EC) has been following a similar practice of fixing the entry prices of certain fruits and vegetables being imported into the EC, which is commonly known as Standard Import Value.  This is fixed on the basis of weighted average of the average prices of the products in the representative markets of the Member States of EC.

It was agreed that tariff value mechanism has to continue for a set of limited commodities which are highly sensitive to undervaluation.  In this context the criteria for fixing Tariff values developed by the DGOV, as set out below was considered and approved.   The criteria are as follows:

(i)                   Large volume of imports and significant revenue contribution.

(ii)                 High rates of duties and sensitivity of under-valuation.

(iii)                Wide fluctuation in assessed values at different Customs stations.

(iv)                Reliable information concerning International price is available.

(v)                  Adequate information and data are available for periodic review of the tariff value so as to keep it close to international prices.

 

            It was suggested that commodities like Mulberry Raw Silk, Betel nut and Spices like Cloves, Cassia, Cardamom, Pepper etc. should be considered for fixing tariff value in view of the large scale undervaluation noticed.  In this regard Member (Cus.) also recalled that suggestions were made for fixation of tariff value on spices in his meeting with the representatives of Spices Board and trade held at Cochin on 16.9.2005. 

Decision :-

The DGOV should examine the possibility of fixing tariff value for more commodities which are highly sensitive to undervaluation after gathering the necessary information and after following the criteria as developed by the DGOV.  Care should also be taken that reliable information regarding international price is available and that the tariff value is calculated in a transparent manner. 

(Action:  DGOV)

Agenda  Point No. C:

Revision of the Guidelines for Valuation of Ball & Roller Bearings

Summary of discussion :-

The Chief Commissioner of Customs (Import), Mumbai referred to the recent guidelines issued by his office concerning the Valuation of imported Ball and Roller Bearings, copies of which were marked to all Commissionerates.   He noted that the system of verifying the price list has not been working well and, therefore, the Custom Houses were facing difficulty in finalizing the provisional assessments.  Therefore, it was proposed that assessment be done on a definite basis subject to a minimum cut off price of US$2 per kg.  Since such a minimum price is not legally tenable, he suggested for fixation of tariff values or specific rates of duty.  The conference deliberated on the criteria to be followed for fixation of tariff value, and found that it was not feasible in respect of Bearings.  Further the suggestion of fixing of specific rate of duty was not easy to implement in view of the difficulty in working out the proper rates.  The Commissioner of Customs (Import), Mumbai agreed that he would carry out a study in this regard in consultation with the DGOV and will submit a workable proposal. 

Decision :    

It was agreed that Tariff value fixation was not feasible in respect of bearings.  With regard to the proposal of the fixation of specific rates, the Commissioner of Customs (Import), Mumbai would study the matter in consultation with DGOV, and submit a specific proposal to the Board.

 

                                                                                 (Action:  CC(I) Mumbai and DGOV )

 

Agenda  Point  D :                 

Reorganization of Special Valuation Branch

Summary of discussion :- 

The Member (Customs) expressed concern over large pendency of SVB cases and basic working arrangements available in the various SVBs.  It was noted that the staff posted in SVBs are for a short period and that the quality of the work suffers due to lack of expertise.  It was also noted that intricacies of the various aspects of relationship, the influence on the price on account of relationship, royalty and licence fees, etc. are matters which need very careful and objective examination for determining the influence on the invoice prices.  A suggestion was made that the possibility of hiring the service of experts like Chartered Accountants, Cost Accountants, etc. should be explored for improving the effectiveness of the SVB work. While welcoming the suggestion, it was also pointed out that the work of SVB is of specialized nature and the basic responsibility has to remain with the officers of Customs, because of their experience and in-depth knowledge of Customs rules and regulations.  In the context of the proposal for a central authority for handling SVB work, it was suggested that the SVB functions should be shifted to the Post Clearance Audit stage, which enable sufficient time for examination of such relationships and their influence on the prices.    However, it was noted that the Post Clearance Audit which is being introduced in the context of the Risk Management System was only transactional audit for individual consignment and that any meaningful SVB work should involve comprehensive audit covering many transactions of a particular assessee.  After discussion, it was concluded that shifting SVB work to Post Clearance Audit stage was not a desirable approach, and that the SVBs should continue but they should be made more effective.  In this context it was suggested that the minimum period of posting of officers in the SVB should be two years, and that the officers should be hand-picked based on their knowledge and experience, so that there is enough stability in the SVB work.  The monitoring of the SVB work by DGOV should also be strengthened by way of scrutinizing the orders and giving constructive comments.  The Central Registry Data (CRD) monitored by the Directorate should also be updated regularly for making it an effective valuation tool for assessing officers.  On the question of level of decision-making in SVB, the consensus was that the matter should be left to the respective Chief Commissioners or Commissioners to decide as to which case should be decided by the Joint / Addl. Commissioner and which category of cases should be handled by the Deputy / Assistant Commissioners.

Decision : -

(a)        The Chief Commissioners will ensure that the SVBs are made more effective, by deploying competent officers for a minimum tenure of two years.

(b)        The Chief Commissioners will also ensure that the CRD of the DGOV are updated on regular basis.

(c)        The SVBs should dispose of all pending cases as on date by 31.12.2005.   For this purpose the Chief Commissioners would ensure that the SVBs are adequately staffed with experienced officers and that the disposal is monitored regularly.  A monthly disposal report should be submitted to the Board through the DGOV. The DGOV would play a more pro-active role in assisting the SVBs of different commissionerates.

 

(Action: CCC – Mumbai Zone – I, Delhi, Kolkata, Chennai & Bangalore and DGOV)

 

Agenda Point E :                                          

 

Transfer Pricing

Summary of discussion :- 

It was generally agreed by the Conference that urgent action was required to be taken to handle the transfer pricing matters.  It was also noted that the work handled by SVBs were directly related to the transfer pricing matter and, therefore, any mechanism to handle the subject should take into account the related party matters handled by the SVBs.

            It was pointed out that a committee set up by the Department of Company Affairs in the year 2001 had gone into the question of transfer pricing issue and the action to be taken by all Departments.  The committee has also analysed the existing legislations having a bearing on transfer pricing and suggested changes in the various departments.  Though Director (Cus.) was a member of the Committee, there is no information readily available on the follow up action taken on this report.  It was noted that the present position of the report should be ascertained.      

            It was also noted that the basis followed by Income Tax department in drafting the Income Tax legislation on transfer pricing should be studied.  Further, administrative and institutional arrangements in handling transfer pricing work in the income Tax Department also should be studied. 

            The conference agreed that there is a need to have close coordination with Income Tax Department on transfer Pricing matters, and to ensure that the prices adopted for both purposes of the imported goods are uniform.  Suitable legislative measures and administrative arrangements would be needed for the purpose.  Consultation with the Income Tax department (CBDT) would also be needed.

            It was suggested that a small committee of officers be constituted in CBEC to study the whole range of questions concerning Transfer Pricing and its implications on the Customs side including the harmonization and coordination of work with the Income Tax department.

Decision :-

The conference recommended that a committee of officers should be set up by the Board urgently for studying the Transfer Pricing matters, and especially the legal and administrative measure (including coordination with the Income Tax department) to be adopted.

(Action:  Board)

Agenda Point F :

 

Application of Valuation Tools and Guidance Material provided by the Directorate General of Valuation

 

Summary of discussion :- 

It was noted that Valuation Alerts are being issued by different agencies like DGOV, DRI, etc. and are causing lot of confusion on how to take follow up action.  After discussion it was agreed that Valuation Alerts should be issued only by the DGOV.  Other agencies like DRI should inform the DGOV regarding the information available to them regarding the undervaluation of any specific commodity, so that the DGOV can study the matter and issue Valuation Alerts if necessary.  Before issuing the Valuation Alerts, DGOV should study from all angles and give as much of information and data as possible to enable the field officers to check the alleged undervaluation and also the supporting information and documentary evidence which may be necessary to issue speaking orders in cases where the declared prices are rejected.  The supporting information may take the form of higher value clearances of identical/similar goods, at other ports, international price information concerning actual transactions, etc.  It was also noted that the Valuation Alerts should have a validity of six months and the alerts should be reviewed by the DGOV periodically to monitor the results after issue of Alerts.

            It was also felt that wherever the DGOV studies reveal undervaluation of specific commodities in certain Customs stations, those Customs stations should be addressed to look into the matter for safeguarding revenue, rather than issuing a general Alert to all Customs stations.  However, if the situation repeats in other Customs stations then general Alert may be issued.

Decision:-  

(a)        It was decided that the DGOV alone will issue Valuation Alerts.  The other agencies like DRI would provide the input to DGOV wherever they have information / intelligence regarding undervaluation. These Alerts shall be periodically reviewed by DGOV. 

(b)        Valuation Alerts would be issued only in cases which would be sustainable in the Court / Tribunal. The supporting information in the form of higher value clearances of identical / similar goods at other ports, international price information concerning actual transactions, etc.  shall be enclosed with the Alert.

(c)        Valuation Alerts would be valid for six months unless renewed.

(Action:  DGOV and Board)

Agenda Point G : 

 

Implementation of Standard units of quantity

Summary of discussion :-  

It was noted that the use of different Units of Quantity for the same item was also creating serious problem both in imports and exports.  In fact the statistics on exports reveal that after the withdrawal of the quota regime the export figurers show less quantity compared to the previous period, and it was found to be due to the wrong use of Units of Quantity.  The need for Standard Units of quantity was, therefore, emphasized both for imports and exports. In this connection it was recalled that the Board had issued a Circular No.51/2002 dated 14.6.2003 regarding the need for following the prescribed units of quantity.  But it has not been implemented strictly by the field formations.  It was, therefore, stressed that the Chief Commissioners concerned should take immediate action for enforcing the Standard Units of quantity.  In many cases although the Custom House had issued Public Notices in this regard, it was not enforced.  There is a need to have a strict enforcing of Standard Units of Quantity within a specified time frame for a purposeful application of the NIDB data, particularly in the context of implementation of the Risk Management Module.

Decision :-

(a)               In respect of imports, all the Customs stations should take action to implement 

           the Standard Unit of Quantity prescribed in the Customs Tariff within a period

           of three months.

(b)                 In the event of non-compliance by the importers, the assessing officers would be entitled to raise query and not clear the Bill of Entry till the requirements of Standard Units of Quantity are complied with. 

(c)                 In respect of exports, the date for enforcement will be decided by the Board in consultation with the Ministry of Commerce.

 

(Action:  Board, All Chief Commissioners)

Agenda Point H :

 

Data Quality Issues

Summary of discussion :-

It was generally agreed in the discussions that there is an urgent need for improving the quality of import data captured for the effective implementation of the Risk Management System as well as for objective data analysis for the purpose of NIDB and ECDB. It was noted that furnishing incomplete information concerning the goods may be deliberate in certain cases to avoid detection of undervaluation and other mis-declarations.  The steps suggested by the DGOV to check the declarations for the compliance of information was endorsed by the conference.  It was also agreed that in cases of deficient declaration the Bills of Entry or Shipping Bills should be sent back for amending the documents by incorporating the missing information.  In this context it was pointed out that details like brand and model may not be relevant in respect of all commodities.  The Mumbai Custom House had prepared a list of commodities and in this regard it was noted that the lists of commodities with the above information (brand, grade, model, etc.) are usually available.  The details required  to be declared by the importers have been prepared by the Mumbai and JNCH, Nhava Sheva Custom House and incorporated in the Standing Order / Public Notice.  It was agreed that these lists would be reviewed and updated by the DGOV for circulation to the Customs Stations as the minimum list of goods on which the above details are to be captured for strict enforcement.  Necessary Public notices and Standing Orders in this regard would be issued by the Chief Commissioners. 

Decision :

The Customs stations have to issue necessary Standing Orders/ Public Notices regarding the requirement of full information concerning the goods to be declared by the importers and captured by the assessing officers in the EDI system.  This will be strictly enforced by the Customs stations by ensuring amendment of the documents in cases where such details have not been declared or captured in the EDI system.

(Action:  All Chief Commissioners & DGOV)

Additional Points :

            The following additional points were discussed in a general way :

 Additional Point J

(i)         Relevant Date for valuation of metal goods:

            As regards the relevant date for valuation of metal goods, it was noted that the practice by JNCH NHAVA SHEVA was not legally tenable.  It was also noted that the practice of fixing standard values of certain commodities by individual Custom Houses by way of Standing Orders was also not legally sustainable.  In this context the discussions on the subject held on the conference of Chief Commissioners in August 2003 was recalled.  The conference reiterated the previous decision that the Custom Houses concerned should review all such Standing Orders and forward to the DGOV for issue of necessary valuation guidelines in respect of the commodities concerned. 

Additional Points N & P

(ii)         Royalty and Licence fees:

As regards payment of royalty and licence fees it was noted that the basic conditions for inclusion of these charges under Rule 9(1)( c) of Customs Valuation Rules, 1988 should be satisfied for their inclusion in the transaction value of the goods concerned.   It was further noted that while the Supreme Court judgment in the case of Essar Gujarat provided certain guidelines for inclusion of Royalty and Licence fee in the value of the goods, the Tribunal in a series of cases ordered against inclusion of Royalty by interpreting the aforesaid Supreme Court judgment in a different way.  It was felt that some of these tribunal decisions needed to be challenged before the apex court.  The Commissioner (Import), Mumbai Custom House informed that although a proposal was made for challenging at least four such tribunal decisions before the Supreme Court, the said proposal was turned down by the Legal & Judicial Section of the Board.  It was felt that the matter could be taken up again with the Board.  It was also noted that the price influence due to the relationship between the importer and the seller and the need for addition of Royalty in the value of the goods in respect of any particular transaction were two independent aspects, and will have to be examined separately.  With regard to the specific situation of royalty payment narrated by the Mumbai Custom House in its brief, it was noted that these matters are in different stages of appeal and should be pursued individually since no general directions can be given with regard to the handling of such individual cases.    

The meeting concluded with vote of thanks to Member (Customs) and all the Chief Commissioners and other participants at the meeting.

This issues with the approval of the Member (Customs).

 

(Action:  Commissioner (Import) and DGOV)

 

 

 

(S. DUTT MAJUMDER)

COMMISSIONER (VALUATION)

 

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F. No.467/79/2005-Cus.V

 

 Subject: Meeting of the Chief Commissioners of Customs on Valuation held at Mumbai on 01.10.05-reg.     

 

A meeting of the Chief Commissioners of Customs on Valuation was held at Mumbai on 01.10.05 under the Chairmanship of Member (Customs and RI & I), CBEC.  The conference discussed the issues as per the Agenda items A to H (Flag A). Briefly the conclusions in respect of each of the Agenda points were as under:

 

Agenda Point No. A (i): Issue of inclusion of demurrage (ship detention) charges (after 2.3.2001) in the assessable value of the imported goods;

            It was decided to insert an Explanation to Rule 9(2) of the Customs Valuation Rules 1988 to the effect that demurrage (ship detention) charges on chartered vessels should form part of the transportation cost specified in the said rule.  It was also decided that this Explanation should be made effective from 02.03.01 by way of a provision to that effect in the Finance Bill.

 

Agenda Point No. A (ii): Finalization of assessments pending on the issue of determination of the quantity (Shore tank v/s Ship Ullage quantity) for assessments of the imported bulk liquid cargo;

It was decided that all provisional assessments should be finalized on the basis of invoice value as was decided in the Conference of August 2003.   Wherever the CVD was leviable at specific rate, quantity determined during the shore tank measurement should be accepted.  In respect of delivery at more than one port the quantity should be apportioned based on the quantity intended to be discharged at a relevant port(s). 

 

Agenda Point No. A (iii): Computation of freight of time chartered/daughter vessel and its inclusion in the assessable value as extended cost of transportaion.

            It was decided that all pending cases of Crude Oil imports would be finalized on the basis of World Scale norms and AFRA wherever available.  In case of minor ports where details are not available the calculation shall be based on the element used for arriving at the World Scale Freight Rate.  The DGOV was asked to prepare a draft circular and submit it to the Board.

 

Agenda Point No. B: Fixation of Tariff Values in respect of Sensitive Commodities

It was decided that the DGOV should examine the possibility of fixing tariff value for more commodities, which are highly sensitive to undervaluation after gathering the necessary information and after following the criteria as developed by the DGOV.  Care should also be taken that reliable information regarding international price is available and that the tariff value is calculated in a transparent manner. 

 

Agenda Point No. C: Revision of the Guidelines for Valuation of Ball & Roller Bearings

It was agreed that Tariff value fixation was not feasible in respect of bearings.  With regard to the proposal of the fixation of specific rates, the Commissioner of Customs (Import), Mumbai would study the matter in consultation with DGOV, and submit a specific proposal to the Board.

 

Agenda  Point  D : Reorganization of Special Valuation Branch 

It was decided that the Chief Commissioners will ensure that the SVBs are made more effective, by deploying competent officers for a minimum tenure of two years; that details of cases are updated on regular basis; that the SVBs should dispose of all pending cases as on date by 31.12.2005.  A monthly disposal report should be submitted to the Board through the DGOV. The DGOV would play a more pro-active role in assisting the SVBs of different commissionerates.

 

 

: 3 :

F. No.467/79/2005-Cus.V

 

 Subject: Meeting of the Chief Commissioners of Customs on Valuation held at Mumbai on 01.10.05-reg.     

 

From Prepage:

 

Agenda Point E: Transfer Pricing

The conference recommended that a committee of officers should be set up by the Board for studying the Transfer Pricing matters, and especially the legal and administrative measure (including coordination with the Income Tax department) to be adopted.

 

Agenda Point F: Application of Valuation Tools and Guidance Material provided by the Directorate General of Valuation

It was decided that The DGOV alone will issue Valuation Alerts.  The other agencies like DRI would provide the input to DGOV wherever they have information / intelligence regarding undervaluation. These Alerts shall be periodically reviewed by DGOV and would be valid for six months unless renewed.  The supporting information in the form of higher value clearances of identical / similar goods at other ports, international price information concerning actual transactions, etc.  shall be enclosed with the Alerts.

 

Agenda Point G :  Implementation of Standard units of quantity

It was decided that in respect of imports, all the Customs stations should take action to implement the Standard Unit of Quantity prescribed in the Customs Tariff within a period of three months. In the event of non-compliance by the importers, the assessing officers would be entitled to raise query and not clear the Bill of Entry till the requirements of Standard Units of Quantity are complied with.  In respect of exports, the date for enforcement will be decided by the Board in consultation with the Ministry of Commerce.

 

Agenda Point H :Data Quality Issues

The Customs stations have to issue necessary Standing Orders/ Public Notices regarding the requirement of full information concerning the goods to be declared by the importers and captured by the assessing officers in the EDI system.  This will be strictly enforced by the Customs stations by ensuring amendment of the documents in cases where such details have not been declared or captured in the EDI system.

 

Certain additional points were also discussed and recorded in the minutes. The draft minutes of the meeting is put up for approval pl.

 

 

 

(M. K. Singh)

Director (ICD)

 

JS (Customs)

 

 

Member (Customs)