Valuation of second hand machinery

Second hand machinery valuation: use price paid where applicable; otherwise apply sequential Valuation Rules and Rule 9 with expert inspection reports.

Valuation of imported second hand machinery is based on the price paid or payable where Rule 3 requirements are met; where post sale reconditioning, refurbishment or buyer incurred pre shipment costs affect the goods the proper officer must include those elements and, if Rule 3 is inapplicable, proceed sequentially through Rules 4-9, applying the residual method under Rule 9 when necessary and using inspection/appraisement reports from overseas chartered engineers (Form A) or DGFT notified Indian agencies/locally empaneled chartered engineers (Form B) to assess depreciation, condition and additional charges.