Value Based Advance Licensing Scheme - Over valuation of import items in the application for Advance Licence

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ce Licence Commissioner of Customs, Bombay has informed that in a number of cases the exporters while applying for Value Based Licences often state inflated unit prices in the application in order to obtain a licence for a higher CIF value so long as they are able to meet the value addition prescribed. The licences so obtained are, subsequently, used for importing inputs at prevailing internation....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ies while issuing VABAL indicate quantity and value of all inputs in the DEEC Book (though quantity restrictions apply only for sensitive items), the unit price declared for obtaining licence can be determined from the DEEC Book. In all such cases where the variation between the price declared at the time of actual import is above 20%, the importer should be asked to substantiate such valuation an....