Article on Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023

1. Statutory Framework

The Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023 ('the Rules') have been framed in exercise of powers conferred under Section 156 read with Section 14 of the Customs Act, 1962. The Rules operationalize the enabling provision introduced in Section 14 to address concerns relating to correctness of declared transaction value in specified cases.

The Rules are procedural in character and supplement the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.

2. Object and Legislative Intent

The Rules establish a structured mechanism for identification of imported goods in respect of which there exists reasonable apprehension of undervaluation. They aim to ensure accuracy and transparency in value declaration through enhanced compliance requirements.

3. Scope and Applicability

The Rules apply only to goods specifically identified by the Board. They exclude certain categories such as imports not involving duty, goods subject to tariff value or specific rate of duty, and other notified classes.

4. Institutional Mechanism

A two-tier mechanism is prescribed:

• Screening Committee for preliminary scrutiny
• Evaluation Committee for detailed examination and recommendation

This ensures identification is based on objective and verifiable material.

5. Procedure for Identification

Upon receipt of a reference indicating possible undervaluation, the committees examine the matter and the Board may notify such goods as 'identified goods'.

The specification generally includes classification, description, technical parameters, unit of measurement, and additional declaration requirements. Such identification is valid for a specified period and subject to review.

6. Obligations of Importers

Importers of identified goods are required to:

• Furnish enhanced value declarations in prescribed units
• Submit additional documentation and information
• Respond to queries raised by the proper officer

Non-compliance may lead to further scrutiny and application of valuation provisions.

7. Powers of Proper Officer

The proper officer may:

• Seek additional information or clarification
• Provide opportunity to justify declared value
• Proceed under valuation rules where doubt persists

The Rules do not confer independent valuation powers and operate within the existing legal framework.

8. Legal Position

The Rules are facilitative and do not override the primacy of transaction value under Section 14. Rejection of declared value must be in accordance with law and supported by reasons.

9. Recent Orders and Extensions (Position as on Date)

The operational framework of the Rules is reflected through periodic orders identifying goods and extending their validity. Significant orders include:

• CAVR Order No. 01/2023 dated 18 September 2023: Issued under Rule 5 in respect of Linear Alkyl Benzene (LAB), identifying the goods for enhanced value declaration requirements.
• CAVR Order No. 02/2023 dated 15 November 2023: Issued under Rule 5 for Stainless Steel of J3 grade, bringing specified tariff headings within the ambit of the Rules.
• CAVR Order No. 01/2024 dated 25 September 2024: Issued under Rule 5 and sub-rule (2) of Rule 10 in respect of Linear Alkyl Benzene (LAB), prescribing enhanced declaration requirements.
• CAVR Order No. 02/2024 dated 13 November 2024: Extension of validity of CAVR Order No. 02/2023 concerning Stainless Steel of J3 grade classified under multiple tariff headings including 72191200, 72191300, 72191400, 72192390, 72193290, 72193390, 72193490, 72193590, 72199012, 72199013,72199090, 72202029, 72202090, 72209022, 72209029 and 72209090.
• CAVR Order No. 01/2025 dated 25 September 2025: Further extension of CAVR Order No. 01/2023 in respect of Linear Alkyl Benzene (LAB).
• CAVR Order No. 02/2025 dated 26 November 2025: Extension of validity of CAVR Order No. 02/2023 relating to Stainless Steel of J3 grade under the aforesaid tariff classifications.

These orders demonstrate the continuing application of the Rules to specific commodities based on risk assessment and valuation concerns.

10. Conclusion

The Rules introduce a targeted compliance regime to address undervaluation in identified sectors. While maintaining the statutory framework of transaction value, they impose additional disclosure obligations to facilitate accurate assessment. Importers dealing in notified goods must ensure strict compliance, supported by proper documentation and valuation justification, to mitigate exposure to disputes and reassessment.