TaxTMI 
TaxTMI 
Customs - Valuation of second hand machinery-Reg.
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....ntral Board of Excise and Customs, which is available on website www.cbec.gov.in, the guidelines for valuation of imports of second hand machinery stands revised in supersession of earlier Circular viz., Circular No. 4/2008Cus dated 12th February 2008 on the subject issue. After due consideration of the suggestions and concerns put forth, the Board has decided to issue the following guidelines for valuation of imports of second hand machinery: 03. Where used second hand machinery is sold for export to India and the sale meets all of the requirements set out in Customs Valuation (Determination of Value of Imported Goods) Rules 2007, the price paid or payable for the goods is to be used as the basis for determining the assessable value. 04.....
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.... imported for use rather than for resale. The difficulty of finding such sales of goods which could be considered identical or similar to the goods being appraised, may preclude the application of this method. 07. Under Rule 8 of the CVR, 2007, goods are valued using the computed value method which is based, among other things on the cost of production of the goods being appraised plus an amount for profit and general expenses. However, since used capital goods are not manufactured as such, viz., as old and used machinery, it is not possible to calculate assessable value based upon the cost of production. 08. It follows that in cases where used capital goods cannot be appraised under Rule 3, and where there may be difficulty in applying R....
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..... The importers/ Customs Brokers may contact them for issue of Inspection / Appraisement Reports. 12. To sum up, the following guidelines shall be followed: (a) All imports of second hand machinery / used capital goods shall be ordinarily accompanied by an inspection I appraisement report issued by an overseas Chartered Engineer or equivalent, prepared upon examination of the goods at the place of sale. (b) The report of the chartered engineer or equivalent should be as per the Form A annexed to this circular. (c) In the event of the importer failing to procure an overseas report of inspection / appraisement of the goods, he may have the goods inspected by M/S. TUV Rheinland India Pvt., Ltd., 82/ A, West Wing, 3rd Main Road, Electronic ....