Valuation of import goods - Desirable clarity in new provisions!

Dear Kishor

Your article is quite informative.
I would just like to add that no new grounds/procedure have been laid in the new rules to assist in arriving at deductive/computed value, which was most desired considering frequent use of erstwhile Rule 8. I don't remember any case wherein erstwhile Rule 7/7A has been used by the Department.

Further, I would say that old habits die hard. Concept of deemed value, the erstwhile concept under Section 14 of the Customs Act, has been brought back in the residual method of valuation under new rules. Does it help in any manner?

Dinesh Kumar Agrawal

19/09/2007

 

Dear Dinesh!
You are right that in rare cases the erstwhile Rule 7/7A has been used by the Department.
Regarding the Rule 8 and bringing the concept of deemed value, this Rule is the last method of valuation and with best judgment concept,reasonable flexibility in application of the preceding rules would be the way in dealing with the said rule. Thus, adoption of deemed value concept may find its place during this process. Dont you find that the drafting by the authority is reasonably well in these import valuation rules when you compare with the old rules?
Regards
Kishore JM

JM Kishore 19/09/2007