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F.No. VAL/TECH/82/2004

Mumbai, 20^th August 2004.

 

To

All Chief Commissioners of Customs

All Commissioners of Customs

 

Sir,

Sub:     Monitoring of valuation trends in respect of sensitive commodities.

 

            Kindly refer to DO letter F. No. 467/81/2004-Cus V dated 11^th August 2004 from the Member (Customs) concerning effective coordination between the Directorate of Valuation and Custom houses in the monitoring of valuation of important and sensitive commodities.

 

2.                   The Directorate General of Valuation has been disseminating the valuation related information available to it in the forms of weekly dispatches of National Import Data Base (NIDB), the monthly publication of Valuation Bulletin, commodity study reports, valuation alerts and guidelines. The DOV website (www.dov.gov.in) has been redesigned recently to provide a lot of additional information, including a weekly release of Valuation News concerning international price movement of important commodities. The Directorate has also been providing specific information and assistance to various Customs stations upon references received.  Several workshops were also organized by the Directorate at major Customs stations during last year to address the problem areas concerning valuation. However, there has been no regular system of communication between the Directorate and the Custom Houses.

 

3.                   In this regard, your kind attention is invited to Board’s instructions contained in letters dated 21^st May 2002 and 25^th September 2001 regarding creation of a Valuation Checking Cell (VCC) or Special Valuation Cell (SVC) in each Custom House for monitoring the Customs valuation work and to coordinate valuation issues with the Directorate of Valuation.  However, the Directorate has not been receiving any regular feedback from the Customs stations with regard to the follow up action on the various information being provided or on issues, which are of concern and to be examined by DOV.  It would be appreciated if the SVC in your Custom House / Commissionerate is strengthened to: (i) monitor valuation trends in respect of sensitive commodities
(ii) review the NIDB outliers pertaining to the respective Commissionerates and take follow up action and (iii) identify problem areas in valuation which should be referred to the Directorate of Valuation.  A monthly report on the above issues may be sent to the Directorate.

 

4.                   A format has been designed for sending monthly reports to the DOV by the respective commissioners, and the same is enclosed.  It is in three Parts. The first two parts (A &B) deal with addition and deletion to the list of sensitive commodities (reflected in the weekly dispatch of DVS files of NIDB). The third part deals with the follow up action on “outliers” marked in the weekly-analyzed data files. It would be appreciated if the monthly reports were sent to the Directorate by the first week of the following month.  The reports may be prepared in MS Excel format.  Apart from sending a hard copy, a soft copy of the reports may please be sent as email attachment to reports@dov.gov.in

 

Yours faithfully

 

 

N. SASIDHARAN

COMMISSIONER (VALUATION)

Encl.: - Proforma.

 

Copy to:

1.                   Director General (Revenue Intelligence), New Delhi.

2.                   Joint Secretary (Customs), CBEC, New Delhi.

3.                   All Commissioners of Customs and Central Excise.

 

 

 

 

D.O. Val/Tech/82/2004

Mumbai, 23^rd August 2004.

 

 

Dear Shri

 

Kindly refer to your D.O. letter F.No. 467/81/2004-Cus. V dated 11^th August 2004 concerning the effective coordination between the Directorate of Valuation and Custom hoses in the monitoring of valuation of important and sensitive commodities.

 

2.         The Directorate General of Valuation has been disseminating the valuation related information available to it in the forms of weekly dispatches of National Import Data Base (NIDB), the monthly publication of Valuation Bulletin, commodity study reports, valuation alerts and guidelines. The DOV website (www.dov.gov.in) has been redesigned recently to provide a lot of additional information, including a weekly release of Valuation News concerning international price movement of important commodities. The Directorate has also been providing specific information and assistance to various Customs stations upon references received.  Several workshops were also organized by the Directorate at major Customs stations during last year to address the problem areas concerning valuation.

 

3.         Upon receiving the above referenced letter, the Directorate has written to all Chief Commissioners requesting to strengthen the Special Valuation Cells in each Customhouse so as to monitor the valuation trends in respect of sensitive commodities and send a monthly report to the Directorate in a specially designed format.  A copy of the letter issued by the Directorate is enclosed.

 

4.         Chief Commissioner of Customs, Mumbai Zone I took a meeting of the officers in the Directorate of Valuation and the senior officers in the Mumbai Customs, Zone I on 17^th August 2004.  The meeting identified certain important areas for effective coordination between the Customhouse and Directorate of Valuation.  These include identification of sensitive commodities prone to under valuation, improvement in the quality of import data captured for the purpose of NIDB, uploading of Directorate of Valuation data, weekly valuation news and other valuation information available on the Directorate of Valuation website onto the local area network (LAN) of the Custom house for easy access by the assessing officers.  It was also decided that the officers of the Custom House and the Directorate of Valuation should meet regularly once a month to discuss and resolve practical problems in valuation.

5.         The Directorate of Valuation has also strengthened its mechanism to monitor the valuation trends in respect of sensitive commodities.    Taking into account the monthly feedback received from Commissioners, appropriate and timely follow up action will be taken to check under valuation of imported goods.

 

            With

 

Yours sincerely,

 

Sd/-

 

N. SASIDHARAN

COMMISIONER (VALUATION)

Encl.: -  As above.

 

 

 

FORMAT OF MONTHLY REPORT TO DOV

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Custom Station :

Report for the month of :

 

Annexure A

 

COMMODITIES RECOMMENDED FOR INCLUSION IN THE SENSITIVE LIST

 

Sr. No	CTH (eight digits)	Description	Brand	Model/Grade/ Specifications	Reason for inclusion in the sensitive list	Whether price sensitive to Country Of Origin	Total No. of  consignments During the last three months (specify period	Total Qty. imported during the last three months (specify period)	Total value of imports specified at column 9 (last three months)	Details of valuation frauds detected or investigated, if any
1	2	3	4	5	6	7	8	9	10	11

 

 

Annexure B

 

COMMODITY RECOMMENDED FOR DELETION FROM THE EXISTING LIST

 

(See weekly DVS files dispatched by DOV and available on website www.dov.gov.in)

           

Sr. No.	CTH  (eight digits)	Description	Specify brand / model / specifications	Reason for recommending deletion from sensitive list	Quantity imported for the last three months (specify period)	Value of imports for the last three months (specify period)	Details of valuation frauds detected or investigated, if any
1	2	3	4	5	6	7	8

 

 

Annexure C

 

Action Taken on Outliers

 

Sr. No.	Number of outliers reported by DOV for the month	Total Differential Revenue involved for all outliers  (Column 2)	Additional Revenue realized on account of re-determination of value (Column 3)	Number of Outliers on which no action has been taken, i.e no change in declared value effected	Remarks
(1)	(2)	(3)	(4)	(5)	(6)

 

 

 

In respect of Column No. 5, please furnish details in the following tabular format:

 

Sr. No.	Bill of Entry Number	BE Date	CTH	Description	Assessed Value	Unit Declared Value (unit)	Weekly weighted Average value (Unit)	Differential revenue Involved	Reasons for not taking any action
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)

 

 

 

NOTE:

1.       All reports should be prepared in MS Excel Format

2.       Soft copy of the report should be sent as an email attachment to directorate.valuation@dov.gov.in

 

 

 

 

 

F.No. VAL/TECH/89/2004

Mumbai, 3^rd September 2004.

 

To

All Chief Commissioners of Customs

All Chief Commissioners of Customs & Central Excise

 

Sir,

 

Sub: Evaluation of the utility of information and guidelines provided by Directorate of Valuation.

 

            The Directorate of Valuation has been providing a lot of information in the form of Valuation Bulletin, Valuation news, Commodity study reports, Valuation guidelines and alerts in order to assist the Customs stations in the appropriate valuation of imported goods and to prevent under-valuation. The National Import Database (NIDB), introduced two years ago, has been providing valuation related information on contemporaneous imports as well the analyzed data (outliers) concerning potentially undervalued goods and international price information. The Directorate has also conducted several Workshops and Seminars to discuss and resolve valuation questions.  A lot of other valuation related information is provided by the Directorate on its website (www.dov.gov.in) for direct access by the field officers.

 

2.         We believe that the activities of the Valuation Directorate have brought about a quality change in the Customs Valuation work at the field. However, it has not been possible to evaluate the contribution by the Directorate in quantitative terms. The Directorate has been receiving monthly reports concerning the additional revenue realized on account of revision of declared values.  However, it is not clearly distinguishable as to what extent the additional revenue realized is on account of the information and guidelines provided by the Directorate of Valuation. It would be appreciated if the additional revenue realized on account of application of the NIDB and other information provided by the Directorate is separately indicated in the monthly report of additional revenue realized.

 

3.         I would also request you to carry out a survey among the officers under your charge regarding the utility of Data and Information provided by the Directorate of Valuation in the enclosed proforma and forward the survey report to us along with your comments and suggestions as early as possible.

 

Yours faithfully,

 

 

(S. S. RENJHEN)

DIRECTOR GENERAL

Encl.: Proforma.