What is Rule 3(2) of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007?

 

The information provided here is part of Online Training Course on howtoexportimport


What is Rule 3(2) of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007?

 


This post is one of the series of posts explaining in detail about  Special Valuation Branch.  I have tried to include maximum information about Special Valuation Branch (SVB) in these articles in simple language.  Hope, these articles suffice you to get complete information about  Special Valuation Branch of Indian Customs department.

 

Rule 3(2) of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007 is given below:

 

1) Subject to rule 8, the value of export goods shall be the transaction value.


 
(2) The transaction value shall be accepted even where the buyer and seller are related, provided that the relationship has not influenced the price.
The above post explains about Rule 3(2) of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007.

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Rule 8 of Customs valuation.
This post is one of the series of posts explaining in detail about Special Valuation Branch (SVB).  I have tried to include maximum information about Special Valuation Branch (SVB) in these articles in simple language.  Hope, these articles suffice you to get complete information about Special Valuation Branch of Indian Customs department.
This post explains about Rule 8 of Customs valuation in India.

8. Rejection of declared value.

(1)   When the proper officer has reason to doubt the truth or accuracy of the value declared in relation to any export goods, he may ask the exporter of such goods to furnish further information including documents or other evidence and if, after receiving  such further information, or in the absence of a response of such exporter, the proper officer still has reasonable doubt about the truth or accuracy of the value so declared, the transaction value shall be deemed to have not been determined in accordance with sub-rule (1) of rule 3.


 
2)     At the request of an exporter, the proper officer shall intimate the exporter in writing the ground for doubting the truth or accuracy of the value declared in relation to the export goods by such exporter and provide a reasonable opportunity of being heard, before taking a final decision under sub-rule (1).


Explanation. - (1) For the removal of doubts, it is hereby declared that-


(i) This rule by itself does not provide a method for determination of value, it provides a mechanism and procedure for rejection of declared value in cases where there is reasonable doubt that the declared value does not represent the transaction value; where the declared value is rejected, the value shall be determined by proceeding sequentially in accordance with rules 4 to 6.  


(ii) The declared value shall be accepted where the proper officer is satisfied about the truth or accuracy of the declared value after the said enquiry in consultation with the exporter.


(iii) The proper officer shall have the powers to raise doubts on the declared value based on certain reasons which may include –
 
(a)  the significant variation in value at which goods of like kind and quality exported at or about the same time in comparable quantities in a comparable commercial transaction were assessed.


(b) the significantly higher value compared to the market value of goods of like kind and quality at the time of export.


(c)  the misdeclaration of goods in parameters such as description, quality, quantity, year of manufacture or production.

 


This post is one of the series of posts explaining in detail about  Special Valuation Branch.  I have tried to include maximum information about Special Valuation Branch (SVB) in these articles in simple language.  Hope, these articles suffice your needs to get complete information about  Special Valuation Branch of Indian Customs department.

 

The above information is a part of Export import business Course online


Special Valuation Branch, A simple tutorial


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Comments


ABHISHEK ANCHLIA : AS I AM THE BEGINNER IN EXPORT INDUSTRY. I WANT TO EXPORT MAIZE INTERNATIONALLY. I GOT LOTS OF QUOTATION AND INQUIRY FROM OVERSEAS BUT I DONT KNOW FROM WHERE TO START AND HOW TO START. CAN U GUIDE ME STEP BY STEP PROCEDURE FROM MAKING FINAL DEALS TO EXPORTING GOODS.

Usha: Hello, I am a beginner in this export industry. I would like to send quotation to client (Bahrain country). My query is how will I prepare the quotation. Material cost plus what other charges / tax, etc.etc. can add in the quotation. Please reply.

emillyallan@gmail.com : discuss challenge faced in applying the rules of valuation

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