News Flash
  • Wider participation of citizens/public/employees is requested in taking online Integrity Pledge. For taking online Integrity Pledge please click here
  • Annual Calendar of Departmental Examination for the year 2018-19 for Group B and below Officers of CBIC. Click here
  • Application of 'own merit' rule for determining seniority of Superintendents in Zones under CBIC. Click here
  • Inviting Nominations for One Day Training Session on Infrastructure Development in CBIC & APAR Writing" for Group A Officers of CBIC on 7th May, 2018 at NACIN Faridabad. Click here
  • Inviting Nominations for Two Days' Training Session on "Free Trade Agreements , Possible Misuse & Redressal Mechanism" for Group A Officers of CBIC on 14th & 15th May 2018 at NACIN Faridabad Click here
  • Weekly newsletter from Chairman, CBEC dated 20/04/2018. Click here
  • Inviting Nominations for Two Days' Training Workshop on Preservation of Heritage Buildings for Group A Officers of CBIC on 21 and 22 May, 2018 Click here
  • CGST Rules, 2017 as amended upto 18.04.2018 have been uploaded. Click here
  • Details of Vendors providing E-seals as per Circular 36/2017-Customs & 37/2017-Customs Click here
  • Training on "Expenditure Management & Budget Planning" on 23.04.2018(Monday)by EMC, DGHRD at NACIN, Faridabad.Click here
  • Weekly newsletter from Chairman, CBEC dated 13/04/2018 Click here
  • "Circulars clarifying the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation; recovery of arrears under the existing law and reversal of inadmissible input tax credit issued; and clarification of issues in refund to UIN." Click here
  • " Seeking views/ suggestions and data for review of All Industry Rates (AIRs) of Duty Drawback for the year 2018- letter to Export Promotion Councils/ Commodity Boards/ Trade and Industry Associations/ Chambers of Commerce."Click here
  • Inviting Nominations for One day Training Session on “Expenditure Management” at NACIN Faridabad for the Officers of the rank of Joint/Addl Commissioners/Commissioners/Pr. Commissioners of CBIC on 23rd April, 2018. Click here
  • "Clarification on issues related to furnishing of Bond / LUT for exports has been issued." Click here
  • Two Days’ Training on Establishment and Administration" at NACIN Faridabad for the Officers of the rank of Asstt. Commissioner to Addl. Commissioners of CBIC on 19th & 20th April, 2018 .Click here
  • Ban on Import of Oxytocin; stepping up vigilance mechanism in check smuggling of Oxytocin - Click here
  • Smooth roll out of e-Way Bill system from 01st April, 2018 - Click here
  • FAQs on e-way bill Click here
  • Appointment of Nodal Officer for PQs in Customs Zones Click here
  • Appointment of Nodal Officer for PQs in CGST Zones Click here
  • TOP Most priority to PQ repliesClick here
  • Circular clarifying export related refund issues issued
  • Advisory on AIO functioning, connectivity issues for GST.-click here, TCS Escalatoin Matrix for GST Zones LAN Implementation, Wipro Handholders, HP Resident Engineers
View all

Customs Valuation (Determination of Value of Export Goods) Rules, 2007

Notification No. 95/2007-Customs (N.T.)

1. Short title, commencement and application.-

(1) These rules may be called the Customs Valuation (Determination of Value of Export Goods) Rules, 2007.

 (2)   They shall come into force on the 10th day of October, 2007.

 (3)   They shall apply to the export goods.

2. Definitions. -

(1) In these rules, unless the context otherwise requires, -

(a) "goods of like kind and quality" means export goods which are identical or similar in physical characteristics, quality and reputation as the goods being valued, and perform the same functions or are commercially interchangeable with the goods being valued, produced by the same person or a different person; and

(b) "transaction value" means the value of export goods within the meaning of sub-section (1) of section 14 of the Customs Act, 1962 (52 of 1962).

(2)

For the purposes of these rules, persons shall be deemed to be "related" only if -

(i)

they are officers or directors of one another"s businesses;

(ii)

they are legally recognised partners in business;

(iii)

they are employer and employee;

(iv)

any person directly or indirectly owns, controls or holds five per cent or more of the outstanding voting stock or shares of both of them;

(v)

one of them directly or indirectly controls the other;

(vi)

both of them are directly or indirectly controlled by a third person;

(vii)

together they directly or indirectly control a third person; or

(viii)

they are members of the same family.

Explanation I. - The term "person" also includes legal persons.

Explanation II. - Persons who are associated in the business of one another in that one is the sole agent or sole distributor or sole concessionaire, howsoever described, of the other shall be deemed to be related for the purpose of these rules, if they fall within the criteria of this sub-rule.

3. Determination of the method of valuation. -

(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.

(3) If the value cannot be determined under the provisions of sub-rule (1) and sub-rule (2), the value shall be determined by proceeding sequentially through rules 4 to 6.

4. Determination of export value by comparison.-

(1)   The value of the export goods shall be based on the transaction value of goods of like kind and quality exported at or about the same time to other buyers in the same destination country of importation or in its absence another destination country of importation adjusted in accordance with the provisions of sub-rule (2).

(2)     In determining the value of export goods under sub-rule (1),  the proper officer shall make such adjustments as appear to him reasonable, taking into consideration the relevant factors, including-

    (i)  difference in the dates of exportation,

    (ii)  difference in commercial levels and quantity levels,

    (iii) difference in composition, quality and design between the goods to be  assessed and the goods with which they are being compared,

    (iv) difference in domestic freight and insurance charges depending on the place of exportation.              

5. Computed value method. -

If the value cannot be determined under rule 4, it shall be based on a computed value, which shall include the following:-

(a)   cost of production , manufacture or processing of export goods;

(b)  charges, if any, for the design or brand;

(c)  an amount towards profit. 

6. Residual method. -

(1) Subject to the provisions of rule 3, where the value of the export goods cannot be determined under the provisions of rules 4 and 5, the value shall be determined using reasonable means consistent with the principles and general provisions of these rules provided that local market price of the export goods may not be the only basis for determining the value of export goods.

7. Declaration by the exporter.-

The exporter shall furnish a declaration relating to the value of export goods in the manner specified in this behalf.

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.