TMI BlogValuation of second hand machineryX X X X Extracts X X X X X X X X Extracts X X X X ..... g to delay in clearances. It has also been informed that PSIAs empanelled by DGFT are not qualified for appraising second hand machinery. 3. In this regard, DGFT vide O.M. No. 01/93/180/51/AM-16/PC II(B)/E-1500/176 dated 3rd September 2019, has clarified that PSIAs are meant only for certifying that consignments of metal scrap are free of radio-active agents and explosives. The PSIAs are not required to be qualified as engineers. Also, ascertaining the age of a second hand machine is an engineering exercise and can be performed only by a qualified Thus. certifying the age of machines is beyond the jurisdiction of PSIAs. 4. After due consideration of clarification from DGFT and representations made by trade. Board has decided that henceforth for inspection/appraisement of second hand machinery, the following procedure shall be followed: 4.1 Where used second hand machinery is sold for export to India and the sale meets all of the requirements set out in Customs Valuation (Determination of Value of Imported Goods) Rules 2007 , the price paid or payable for the goods is to be used as the basis for determining the assessable value. 4.2 However, it is frequently the case th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. charges of disassembly packing and any expenses incurred by way of pre-shipment inspection agency charges etc. 4.7 Given the nature of challenges in computing the value of second hand machinery under Rule 9 , and the need to ensure that the approach applied reflects commercial reality and results in a value which is fair, and is arrived through uniform processes by all Custom Houses, it is felt that it is necessary to obtain inspection/appraisement reports from qualified neutral parties. 4.8 For this purpose, the Board has decided that Inspection/Appraisement Reports issued by Chartered Engineers, or their equivalent, based in the country of sale of the second hand machinery shall be accepted by all Custom Houses. For the purposes of uniformity,the format in which inspection/appraisement reports shall be prepared by the Chartered Engineer is annexed to this circular. In the event that an importer does not produce an inspection/appraisement report in the prescribed format from the country of sale, he shall be free to engage the services of any Chartered Engineer from those empanelled by the Custom House of the port of import. 4.9 No Custom House shall require any impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 86-Cus VI dated 19/11/1987 and dated 4/1/1988. If such comparison does not create any doubt regarding the declared value of the goods, the same may be appraised under rule 3 of the CVR, 2007 . If there are significant differences arising from such comparison, Rule 12 of the CVR, 2007 requires that the proper officer shall seek an explanation from the importer justifying the declared value. The proper officer may then evaluate the evidence put forth by the importer and after giving due consideration to factors such as depreciation, refurbishment or reconditioning (if any), and condition of the goods, determine whether the declared transaction value conforms to Rule 3 of CVR, 2007 . Otherwise, the proper officer may proceed to determine the value of the goods, sequentially, in terms of rule 4 to 9 . 7. Circular No. 25/2015 dated 15th October, 2015 stands superseded with the issue of this circular. 8. Clarification, if any, may be sought from the Board. 9. Hindi version follows. Yours faithfully, (Mandeep Sungha) Joint Commissioner (Customs) Form A (Refer Para 6 (b) of Circular No.07/2020-Customs dated 05th February 2020) [ On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (xii) If No. then estimated cost thereof____ (xiii) Please briefly describe the nature of repairs and/or refurbishment: (xiv) Are there any charges incurred / to be incurred by the purchaser, for dismantling. packing and transporting the machinery to the port of export? If yes. pl indicate the charges____ (xv) Any catalogues/documentation of the machine are available? If yes, please provide the details and copies. e) The following means/aids/technical references material have been used for inspecting the goods: (i) ____________________________ (ii) ______________________________ (iii) ________________________________ 3. I/We hereby declare that the particulars and statements made in this certificate are true and correct. Date ______ Signature _______________ Seal of the Inspecting Agency Name of the Inspecting Person/Inspector_____ Designation___________________ Address (Office)________________________ E-mail Address_________________________ Phone Number_________________________ Instructions: 1. This c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Please attach close up photographs of the machinery: multiple photographs may he taken, if necessary.) (ix) Has any reconditioning or repairs been carried out immediately preceding this inspection: YES/No (x) If yes. have these been carried out at the expense of the seller or by the purchaser or a third party? (xi) Are there invoices to indicate the cost thereof: YES/NO (please enclose relevant invoices) (xii) If then estimated cost thereof_________________ (xiii) Please briefly describe the nature of repairs and/or refurbishment: (xiv) Were any charges incurred by the purchaser, for dismantling, packing and transporting the machinery to the port of export? If yes, please indicate the charges_______ (xv) Is/are any catalogues/documentation of the machine available? If yes. please provide the details and copies. d) The following means/aids/technical reference material have been used for inspecting the goods: i) _____________________________ ii) ______________________________ iii) _______________________________ 3. I/We hereby declare that the particulars and statements made in this certificate are true and correct. Date __ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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