Amendment of Bill of Entry for Assessable Value

[BRIJMOHAN GOYAL]

Dear Sir,

Please guide us on below issue:-

If Bill of Entry has wrong file ( More Value due to Euro in place of USD) with higher assessable value and goods also cleared , have any chances for amendment of Bill of Entry to original Invoice value by Customs.?

We had import Carbon Steel Plates for Home consumption and our PO was in USD , due to oversight , the currency indicated in B/E is EURO hence Bill of Entry was assessed with exchange rate ₹ 72/- (INR/EURO) in place of ₹ 53/- (INR/USD) which was higher by 35%(approx.) and duty paid accordingly.

Now, it was noticed that B/E was assesses on higher value so we want expert advise on :

(1) Possibility for amendment of B/E

(2) Is there any time limit to re-call and amend B/E

(3) Documents required for filing the request for B/E amendment.

Regards,

BM Goyal

[MADAN RAHEJA]

(1) Since goods appear to have been cleared under self assessment, Section 154 of Customs Act, 1962 is not applicable. However, recourse can be taken under Section 149 of Act ibid since documentary evidence in form of invoice showing correct value was existing at the time of clearance of goods.

(2) Section 149 is silent on time limit.

(3) You may file all relevant documents i.e copies of import documents including invoice. You may also file foreign exchange remittance documents to establish your point.

Above opinion is for specific queries raised by you. However, as a pre-cautionary measure, you may also contemplate filing a direct refund claim.

[Suryanarayana Sathineni]

Dear Mr. Goyal,

As stated by our learned friend, there is a possibility for amendment of Bill of entry under Sec 149 . In view of this and an abundant caution, you may need to ....

submit a request letter to the Customs Authorities for re-assessment of the wrongly filed Bill of entry giving reasons to justify reasons let to the wrong filing of the said BE by submitting the copies of your PO and other relevant documents indicating the price in USD.

Generally, the Authorities consider your request since the situation is genuine. Even after that, your request is denied, you may have to request the Authority to pass a speaking order rejecting your request so that you may file an appeal before the Commr. Appeals . The option of filing refund would arise only in the event of your succeeding the appeal,

Regards

Suryanarayana

[YAGAY andSUN]

Section 149 of the Customs Act, 1962 read with various trade notices allow to seek amendments in the Bill of Entry even after out of charge order is passed by the Customs Authorities.

Bill of Entry can be re-assessed even though the goods were no longer under the charge of Customs authorities Reiter India Pvt. Ltd. Vs. Commissioner of Customs (Import) [2014 (8) TMI 318- CESTAT Mumbai] In the instant case, Reiter India Pvt. Ltd. (“the Appellant”) imported a consignment of Textile Machinery parts vide invoice no. 3506445/2000 dated May 10, 2011 valued at 997740.24 CHF vide Bill of Entry no. 3610581 dated May 25, 2011. The Appellant cleared the goods on payment of relevant Customs duties along with interest. Thereafter, the Appellant found that value of one item was shown as 4.04 CHF instead of 0.04 CHF. The Appellant contacted the supplier, who in turn informed the Appellant that they have charged wrong price for the said part due to typographical mistake. On receipt of the goods in factory and on receipt of original Bill of Entry, the Appellant availed Cenvat credit against the said consignment. However, after noticing the error in invoice value, the Appellant immediately reversed the Cenvat credit. The Appellant paid excess duty of ₹ 1,11,46,682.70 due to error in the invoice for which, they made application before the Dy. Commissioner for reassessment of the Bill of Entry. The application was rejected on the ground that the goods were no longer under customs charge and no documentary evidence was available warranting amendment and reassessment of Bill of entry. The Adjudication order was confirmed by the Commissioner (Appeals). Accordingly, the Appellant filed an appeal. The Hon’ble Mumbai Tribunal observed that payment of excess duty by the Appellant was not in dispute as the price of the impugned item was 0.04 CHF which was invoiced wrongly by the supplier as 4.04 CHF. The purchase order and the invoice were available at the time of filing the Bill of entry. Therefore, the Hon’ble Tribunal held that as per the CBEC Manual, amendment in Bill of entry shall be allowed although goods have been given out of charge. Accordingly, the order of the Commissioner (Appeals) was set aside.

[Nilesh Kalsariya]

Dear Sir,

Have a nice day,

Please specify Documents List of Pre-shipment and post-shipment for Expot - Import,

What is the meaning of Pre Export and Post Export?

I request you please solve my query,

Best Regards,

Kalsariya Nilesh