Customs Valuation Rules, 1988- Determination of value of imported goods in cases where prima facie evidence is available on under valuation - Customs - F. No. 467/13/90-Cus. V (ICD)

Customs Valuation Rules, 1988- Determination of value of imported goods in cases where prima facie evidence is available on under valuation F. No. 467/13/90-Cus. V (ICD) Dated 7-5-1990 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs New Delhi Subject : Customs Valuation Rules, 1988- Determination of value of imported goods in cases where prima facie evidence is available on under valuation. The difficulties in determination of the value of imported goods under the Customs Valuation Rules, 1988 in cases where the goods, prima facie, appear to be undervalued have been considered by the Board. It has been observed that the basic provisions of Section 14(1) of the Customs Act continue to remain unchanged and provides sufficient authority to disregard the declared transaction value of imported goods where under valuation is reasonably suspected and prima facie evidence is available in spite of the fact that concrete evidence is not available to established fraud. The prima facie evidence with the Customs Department can be in the form of published price lists of the manufacturer or the previously accepted customs values of identical or similar goods in a series of imports at or about the same time, retrieved from the computer. 2. If the declared price is substantially lower than the known prices of the goods then the responsibility to explain the difference to the satisfaction of the customs authorities is with the importer. If the importer fails to do so it would be in order to disregard the declared value after giving reasonable opportunity to the importer to explain his case The goods may then be valued under the subsequent methods of valuation laid down under the Rules after rejecting the transaction value method (Rule 4). 3. In this regard a copy of the order of the CEGAT in the case of M/s. Delhi Plastics (vide Order No.137 to 141/88 A dated 11-2-1988) is enclosed. The Tribunal had confirmed the findings of the Customs authorities in this particular case even though no concrete evidence was available to establish fraud. This was also confirmed by the Supreme Court. It is considered that the conclusions arrived at in this order would still be applicable under the new valuation Rules. This may be brought to the notice of the Assessing Officers for guidance.