Export value declared more than the books value

[THYAGARAJAN KALYANASUNDARAM]

Dear experts,

One of my clients who exported the capital goods after usage of 10 years in their factory, exported the same to other country and value quoted 100 times morethan the book value(wdv). What is the pros and cons. Now he got the notice from the customs department for the reasons for the value quoted higher than the book value.

Can anyone suggest me on this.

Thanks in advance.

AI Summary

Over-valuation of exports can trigger customs scrutiny and denial of incentives despite a declared transaction value.
Declared transaction value above book value may still be accepted under transaction value principles and Rule 3(2) if relationship did not influence price, with the departmental burden of proof to displace declared value; nevertheless, over-valuation risks denial of export incentives or duty drawback, potential confiscation consequences (limited if goods already exported), and FEMA scrutiny, so deliberate over-valuation should be avoided.