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

Nodal Standing Orders

  1. F.No.:VAL/TECH/82/2004

Mumbai, 2ndSeptember 2004


All Commissioners of Customs,


Sub: Monitoring of valuation trends in respect of sensitive commodities

Kindly refer to Directorates letter of even no. dated 20.08.2004 on the above subject.

2.Please find enclosed herewith a draft standing order prepared by Directorate of Valuation for improving the coordination of Customs valuation work. You may consider issuing a Standing Order on these lines in your customhouse with suitable modifications.

Yours faithfully,



Encl.: As above.

Copy to:

  1. All Chief Commissioners of Customs / Central Excise.
  2. All Commissioners of Customs Central Excise.


(Draft Standing order)




Sub:Monitoring Valuation trend of sensitive commodities.

  1. Special Valuation Cell
  2. NIDB Outliers
  3. Sensitive Commodities
  4. Brand, Grade, Specification
  5. Intranet
  6. Special Investigation Branch
  7. Special Valuation Branch
  8. DOV Nodal Officer

1. Special Valuation Cell:

In order to improve the coordination of Customs Valuation work, the Special Valuation Cell / Valuation Checking Cell of the Custom House is reconstituted and it will be headed by an Additional / Joint Commissioner (DOV Nodal Officer) and will be assisted by ____ Appraisers. The SVC will have the following functions:

(i)Monitoring the valuation trend in respect of sensitive commodities in coordination with appraising groups;

(ii)Reviewing and updating of sensitive list;

(iii)Review of NIDB outliers on a weekly basis and monitoring the follow up action by appraising groups to protect the interest of revenue

(iv)Sending consolidated monthly report to DOV as per the format enclosed at AnnexureA, Annexure B and Annexure C;

(v)Monitoring the additional revenue realized on account of revision of declared values based on the NIDB data and other factors, and sending monthly reports to DOV;

(vi)Analysing the Valuation problems faced by appraising groups and providing guidance. Matters requiring DOV advice should be prepared and put up to the Commissioner before making reference to DOV.

  1. NIDB outliers:

All Appraising officers and the Supervisory officers (Addl/Joint/Deputy/Assistant Commissioners) in charge of import assessing groups should make the best use of the NIDB data and other valuation related information (Valuation Bulletin, Weekly Valuation News, SVB data, Valuation Guidelines, case laws etc.) disseminated by the Directorate of Valuation. The appraising officers should also scrutinize the weekly dispatches of NIDB outliers pertaining to the respective charge and take follow up action. All the group ACs / DCs should submit weekly reports on the action taken in the proforma attached (Annexure C) to the Special Valuation Cell.

3.Sensitive Commodities:

A list of sensitive commodities pertaining to the appraising Group shall be prepared. The appraising officers should keep special watch on the valuation trend in respect of sensitive commodities prone to under-valuation and imported through their groups.All ADCs/JCs in charge of respective groups should closely monitor the valuation practice and take corrective measures when distortions are noticed. A consolidated list of sensitive commodities being imported should be prepared by the groups concerned and a monthly report on the valuation trend in respect of sensitive commodities should be sent to the Special Valuation Cell. The SVC shall consolidate the report and put up the same to the Commissioner by the 3rdday of the following month for forwarding to the Directorate of Valuation. The format prescribed for the purpose is atAnnexure A and Annexure B.The first one concerns additions to the existing list (fresh list may be prepared for the first time) and the second is for deletion from the existing list (for reports in subsequent months),

4.Brand, Grade, Specification:

It is mandatory for the Importers / CHAs to declare full and correct information concerning the goods being imported such as description, brand, model, grade, specification, etc. in the appropriate columns while filing the Bill of Entry. Further the unit of quantity declared should be the standard unit.However, very often these requirements are not complied with. Therefore it has been decided to monitor the quality of data captured at data entry stage, during the assessment and at the time of examination/clearance. For this purpose, all appraising groups should prepare a list of sensitive goods on which brand; model, grade or specification should be compulsorily declared. A consolidated list will be compiled by the SVC and it should be sent to the Manager, CMC Service Centre. The DC/EDI shall ensure that the fields of brand, grades, specification, unit of quantity etc. are entered in all these cases in the import declaration and that the respective columns are not either left blank or filled with junk characters. The AO/AC/DC of appraising groups, while assessing the Bill of Entry, should also see that brand; model, grade, specification, unit of quantity etc. are declared appropriately by the importer. In case the importer does not declare such crucial information, which has a bearing on valuation, the appraising groups shall return the bill of entry for capturing these details by amending the bill of entry. They should also give suitable examination order for verification of the same at the time of examination of the goods.The Examining Officer / AO in the Docks should also examine the goods with respect to Brand, Model, Grade, Trademark, Technical Specifications, etc. and ensure that the missing details are captured bydirecting the importer/CHA to amend the Bill of Entry before allowing out of charge.


The Special Valuation Cell, in consultation with the System Manager, shall make arrangements for regularly updatingthe NIDB database on the Custom house Intranet (LAN). They shall also arrange for downloading the SVB data, Valuation Bulletin, Valuation news, Valuation Guidelines, alerts etc. every week from the Directorate of Valuation website ( and copy them onto the Intranet server. The individual assessing officers and other Intranet users should be given passwords for accessing confidential data.The SVC, in coordination with DOV, should also conduct training /familiarization sessions for the officers on the utilization of NIDB data and other valuation related information made available on the Intranet. Joint/Additional Commissioners of the assessing groups shall keep monitoring the utilization by the individual officers of the NIDB and other valuation information provided on LAN (Intranet). The same details are also available on the website of the Valuation Directorate ( and officers who are having Internet facility may access DOV website directly. In order to facilitate the access, the Customhouse website should provide a hyperlink to the DOV website.

6.Special Investigation Branch:

The SIB should also make use of the NIDB data and other valuation related information available on the Intranet (or DOV website) for monitoring valuation practices and in the detection and investigation of valuation related offences.

7.Special Valuation Branch (SVB):

(Applicable to Custom Houses having SVB).

All efforts shall be taken to reduce the pendencies of SVB cases pending for decision. As per office orderNo.datedJoint/Addl. Commissioner in charge of the SVB has been designated as the proper officer for taking SVB decisions. Copies of Orders passed by SVB shall be sent to the DOV along with the monthly statement of cases registered and decided.

The SVB should also update the database pertaining to Special Valuation cases in the Central Registry Database (CRD) of the DOV and posted on DOV website. The updated SVB database on the DOV webiste also should be downloaded in coordination with the Nodal Officer and Systems Manager (EDI) for uploading on the intranet on a monthly basis.

8.DOV Nodal Officer

Shri/Smt.. Additional/Joint Commissioner in charge of SVC/VCC of Import Commissionerate is nominated as Nodal officer to coordinate Valuation matters with the Directorate of Valuation. The Nodal officer shall have the following functions:

(i)Keeping the liaison with Directorate of Valuation, Mumbai and the Zonal offices at Delhi/Bangalore on all Valuation related matters;

(ii)Downloading all Valuation related information (Valuation Bulletin, Weekly Valuation news, Valuation alerts, Guidelines, etc.) from DOV website on a weekly basis and passing it on to the System Manager (EDI) for uploading on the Intranet;

(iii)Coordinating with the System Manager (EDI) to ensure that raw import data goes on a daily basis to DOV and that analyzed weekly data received from DOV is posted onto the Intranet;

(iv)Monitoring the quality of data captured in the EDI System at the data entry, assessment and clearance stages and taking suitable measures to ensure that all relevant details are incorporated in the import data;

(v)Monitoring the utilisation of NIDB and other valuation related information by the assessment groups in the Commissionerates on Intranet and reporting to the Commissioner;

(vi)Ensuring that the monthly reports to DOV are prepared and dispatched in time.

Commissioner of Customs