Cir(133)/2022                                                                               October 11, 2022

Committee:

Dear Sirs/ Madam,

Sub.: Notice calling for suggestions, views, comments, feedback etc. from stakeholders on draft rules pertaining to Customs Valuation of imported goods in terms of recent amendment in Section 14 of the Customs Act, 1962 vide Section 89 of the Finance Act, 2022 – reg.

Greetings from Confederation of Indian Textile Industry!

This is to inform you that CBIC has issued draft rules pertaining to Customs Valuation of imported goods in terms of recent amendment in Section 14 of the Customs Act, 1962 vide Section 89 of the Finance Act, 2022 by inserting the below clause in sub-section (1) of the said Section 14:

“the additional obligations of the importer in respect of any class of imported goods and the checks to be exercised, including the circumstances and manner of exercising thereof, as the Board may specify, where, the Board has reason to believe that the value of such goods may not be declared truthfully or accurately, having regard to the trend of declared value of such goods or any other relevant criteria.”

The draft rules for making the above provision operational are attached for your reference.

Members may kindly note the below exception lists for the above said clause:

(a)          imports not involving duty;

(b)          goods for which tariff value has been fixed by the Board in terms of sub-section (2) of section 14 of the Act;

(c)          goods which attract import duty on specific rate basis;

(d)          imports made in terms of authorization or license issued under duty exemption scheme of the Foreign Trade (Development and Regulation) Act, 1992 in which the inputs imported prior to export are physically contained in the export product;

(e)          imports made in relation to section 65 of the Act;

(f)           imports where buyer and seller are related and an investigation on relationship has already been contemplated or finalized;

(g)          Project imports;

(h)          imports by Government, Public Sector Undertakings;

(i)            imports made in non-commercial quantities;

(j)            goods imported for the purpose of re-export; or

(k)          imports specified by the Board.

It may kindly be noted that products falling under the above exclusion list will not be impacted by these amendments. However, for any product categories, which will get effected, members are requested to kindly provide their suggestions/feedback on the Draft rules latest by 13^th October 2022, so that same can be compiled and can be taken up at appropriate level.

This is for your information and further necessary action.

 Thanking you,

Yours faithfully,

Chandrima Chatterjee

Secretary General