Valuation of imported goods

[Rajesh Kumar]

Sir/ Madam

An importer imports motor scrap containing for example 10% copper. Now department calculation value of imported scrap by mathematical calculation for examples total Value with taxes/ total weight *10% which comes about ₹ 300/kg as purchase cost whereas party selling the said copper after extracting from motors and using manpower at the rate of Rs. about 150/ kgs.

In this process the ITC is also getting accumulated.

Is department can make a case of under valuation of goods ?

Please enlight all angles from party and department side.

AI Summary

Valuation of imports must follow sequential customs rules; provisional release with bond and appeal remedies are available.
Valuation of imported mixed-content goods must follow sequential customs valuation rules: the department may reject the declared value but cannot use arbitrary mathematical apportionment and must apply statutory valuation methods; value enhancement requires contemporaneous import or material evidence of undervaluation. Importers may request provisional clearance subject to a provisional duty bond or bank guarantee, insist on a speaking order, and pursue administrative appeals against valuation determinations.