Home / News / India /  Centre seeks views on draft customs valuation rules

New Delhi: The Central Board of Indirect Taxes and Customs (CBIC) has sought comments and feedback from the public on a set of draft rules dealing with certain imported goods, the value of which may not have been declared correctly, showed an official order.

CBIC said that comments on the Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2022 could be shared with the tax authority by 14 October.

The government had in Finance Act 2022 introduced a new provision which amended the Customs Act. It inserted a new provision regarding additional obligations of an importer on certain imported items the value of which may not be declared “truthfully or accurately" going by trend of the declared value of goods.

This provision allowed CBIC to specify additional obligations of the importer in respect of a class of imported goods whose value is not being declared correctly. CBIC has also been authorised to specify the criteria of selection of such goods. “This amendment is a measure to address the issue of undervaluation in imports," CBIC said quoting union budget documents.

Experts said importers may have to furnish additional information regarding the shipment on such items. By these rules, CBIC may declare goods as ‘identified goods’, which will be based on certain examination and reference material, said Saurabh Agarwal, Tax Partner, EY.

“The importer of such ‘identified goods’ are required to undertake additional obligation such as declaration of the technical or other specifications while filing bill of entry, furnishing additional information at Customs Automated System etc. Inapplicability of these rules on goods imported under Manufacture and Other Operations in Customs Warehouse (MOOWR) license and Project Import Scheme may encourage importers of ‘specified goods’ to make import under these schemes," explained Agarwal.

ABOUT THE AUTHOR

Gireesh Chandra Prasad

Gireesh has over 22 years of experience in business journalism covering diverse aspects of the economy, including finance, taxation, energy, aviation, corporate and bankruptcy laws, accounting and auditing.
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