Customs

Valuation of imported goods and export goods-:

1.Valuation of goods has been quite a thorny issue in Indian Custom Houses. It is good that with effect from 10th October, 2007, a more objective and transparent law has taken the place of earlier ambiguous law in which sub-section (1) of Section 14 talked of a deemed value while its sub-section (1A) read with the earlier valuation Rules said that the imported goods would be assessed to duty on the basis of their transaction value. The new Section 14 does away with this dichotomy and gives pride of place to transaction value. Read together with the new valuation rules- the Customs Valuation (Determination of Value of Imported Goods) Rules 2007 and the Customs Valuation (Determination of Value of Export Goods) Rules, 2007- it establishes the international valuation norms under the World Trade Organization in India. T deemed value concept still survives but only as a residual method or the last resort method or cap value in Rule 9 when all other methods fail. There is no condition in the new Section 14 that it applies only to goods subject to ad valorem duties. Hence, it applies to all goods whether imported or export goods and whether dutiable or duty free or on which export promotion benefit is claimed.