Directorate General of Valuation Central Board of Excise & Customs Government of India

467/09/2001-Cus.VCircular No.91/2003-CUS

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Circular No. 91/2003-CUS -14thOctober 2003

Government of India
Ministry of Finance
Department of Revenue

Sub: - Rule 10A in the Customs Valuation Rules, 1988 reg.

I am directed to state that during the Valuation Conference held at Mumbai on 21stand 22ndAugust, 2003, views were expressed that the Boards Circular No.16/2003, dated 17.03.2003 needed a review since it mandated the issue of a speaking order under Rule 10A of CVR, 1988, in all cases where enhancement of value was resorted to. It was pointed out that it might not be practicable/desirable to issue a speaking order in all such cases particularly where the enhancement of value has been done and that on many occasions, the importers agree to the enhancement of value based on the higher contemporaneous value noticed in the National Import Data Base (NIDB) made available by the Directorate of Valuation.

  1. The matter has been examined in the Board. It is hereby clarified that Circular No.16/2003, dated 17thMarch 2003, was issued in the context of representations from the trade that in some cases, officers had arbitrarily enhanced the values without assigning any reasons and that no speaking orders were being issued inspite of requests by the importers. Such a situation, it was felt, was not desirable. Rule 10A of CVR, 1988 empowers the department to question the truth or accuracy of the declared values so that the proper officer may ask for further information/documents. At the request of the importer, the proper officer is required to intimate in writing, the grounds for doubting the truth or accuracy of the declared value and provide a reasonable opportunity of being heard, before taking a final decision. However, it may not be necessary to issue speaking orders in all such cases where enhancement of value has been resorted to with the consent of the importer. However, care would have to be taken to obtain the consent of the importers in writing so that subsequently, they may not allege arbitrary enhancement.

N.J. Kumaresh

Under Secretary to the Government of India

Tuesday, October 14, 2003