Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 - Instructions - reg.

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....dit/ Export Promotion/Safeguards The Chief Departmental Representative (CESTAT), Delhi Sir, SUB.: Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 - Instructions - reg. Your attention is invited to section 95 of the Finance Act, 2007 which substitutes the existing section 14 of the Customs Act, 1962. The new section 14 of the Customs Act, 1962 shall come into force with effect from 10-10-2007 in terms of Notification No 93/2007-Customs (NT) dated 13^th September, 2007. The new Import Valuation Rules, i.e., Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 made under the provisions of section 14 of the Customs Act, 1962, have been notified vide Notification No 94/2007-Customs (NT) da....

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....h goods may be subjected to the said process after their importation. At times, royalty, license fee or any other payment for a process to be paid by the importer, may be linked to post-importation activity like running of the machine/ plant, when the process is put to use.  This Explanation has been added in the context of the Supreme Court judgement in the case of J.K. Corporation Ltd. Versus Commissioner of Customs (Port) Kolkata [2007 (208) ELT 485 (SC)] so as to clarify that such royalty, license fee, etc., if otherwise includible in terms of clauses (c) or (e) of Rule 10, will be includible in the value of the goods irrespective of the fact that such royalty, licence fee, etc., relates to a process which is made operational durin....

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.... in the cost of transportation. (vi)  An 'Explanation' has been added to Rule 12 (erstwhile Rule 10A), which relates to rejection of declared value, to bring more clarity and objectivity in exercising the authority for rejection of declared value.  The Explanation clarifies that this rule as such does not provide a method for determination of value, and that it merely provides a mechanism and procedure for rejection of declared value in certain cases.  It also clarifies that where the proper officer is satisfied after consultation with the importer, the declared value shall be accepted.  This Explanation also gives certain illustrative reasons which could form the basis for having doubt about the truth or accuracy of ....