Circular No. :467/09/2001 Cus V Cir.No.16/2003 Dated : 17/3/2003

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.