TaxTMI 
TaxTMI 
Valuation of imported second sand machinery and requirement of various documents
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....PSIAs are not available. 2. It has been represented that the PSIAs empanelled by DGFT are insufficient in number leading to delay in clearances. It has also been informed that PSIAs empanelled by DGFT are not qualified for appraising second hand machinery. 3. In this regard, DGFT vide O.M. No. 01/93/180/51/AM-16/PC I1(B)/E-1500/176 dated 3rd September 2019, has clarified that PSIAs are meant only for certifying that consignments of metal scrap are free of radio-active agents and explosives. The PSIAs are not required to be qualified as engineers. Also, ascertaining the age of a second hand machine is an engineering exercise and can be performed only by a qualified engineer. Thus, certifying the age of machines is beyond the jurisdiction of PSIAs. 4. After due consideration of clarification from DGFT and representations made by trade, Board has decided that henceforth for inspection/appraisement of second hand machinery, the following procedure shall be followed: 4.1 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 pai....
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...., 2007, the proper officer may be required to apply the residual method under Rule 9 so as to factor condition, depreciation, refurbishment, charges of disassembly & packing and any expenses incurred by way of pre-shipment inspection agency charges etc. 4.7 Given the nature of challenges in computing the value of second hand machinery under Rule 9, and the need to ensure that the approach applied reflects commercial reality and results in a value which is fair, and is arrived through uniform processes by all Custom Houses, it is felt that it is necessary to obtain inspection/appraisement reports from qualified neutral parties. 4.8 For this purpose, the Board has decided that Inspection/Appraisement Reports issued by Chartered Engineers, or their equivalent, based in the country of sale of the second hand machinery shall be accepted by all Custom Houses. For the purposes of uniformity, the format in which inspection/appraisement reports shall be prepared by the Chartered Engineer is annexed to this circular. In the event that an importer does not produce an inspection/appraisement report in the prescribed format from the country of sale, he shall be free to engage ....
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....espect to the report of the Chartered Engineer. Similarly, the declared value shall be examined with respect to the depreciated value of the goods determined in terms of the circular No. 493/124/86-Cus VI dated 19/11/1987 and dated 4/1/1988. If such comparison does not create any doubt regarding the declared value of the goods, the same may be appraised under rule 3 of the CVR, 2007. If there are significant differences arising from such comparison. Rule 12 of the CVR. 2007 requires that the proper officer shall seek an explanation from the importer justifying the declared value. The proper officer may then evaluate the evidence put forth by the importer and after giving due consideration to factors such as depreciation, refurbishment or reconditioning (if any), and condition of the goods, determine whether the declared transaction value conforms to Rule 3 of CVR. 2007. Otherwise, the proper officer may proceed to determine the value of the goods, sequentially, in terms of rule 4 to 9. 7. Circular No. 25/2015 dated 15th October, 2015 stands superseded with the issue of this circular. 8. Strict compliance of the above mentioned instructions shall be ensured by the respective S....
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....r repairs been carried out immediately preceding this inspection: YES/No (x) If yes, have these been carried out at the expense of the seller or by the purchaser or a third party? (xi) Are there invoices to indicate the cost thereof: YES/NO (please enclose relevant invoices) (xi) If No, then estimated cost thereof (xiii) Please briefly describe the nature of repairs and/or refurbishment: (xiv) Are there any charges incurred to be incurred by the purchaser, for dismantling, packing and transporting the machinery to the port of export? If yes, pl indicate the charges. (xv) Any catalogues/documentation of the machine are available? If yes, please provide the details and copies. e) The following means/aids/technical references material have been used for inspecting the goods: (i) (ii) (iii) 3. I/We hereby declare that the particulars and statements made in this certificate are true and correct. Date Signature Name of the Inspecting Person/Inspector · Designation Address (Office) Document 3 E-mail Address Phone Number Seal of the Inspecting Agency Instructions: 1. This certificate shall ....