News Flash
  • Minutes of the राजस्वज्ञानसंगम-Annual Conference of Tax Administrators, 2017 held at New Delhi on 01-02 September, 2017 have been uploaded on ANTARANG
  • Constitution of National Anti-profiteering Authority(NAA) under GST. click here
  • The Opt-In for Composition Levy for 2017-18 is available on GST portal. The window for opting in for composition levy for 2017-18 will be open till 30th Sep midnight. It will be applicable from 1st Oct 2017. Registration of TDS service will be available on GST portal shortly.
  • CGST Rules, 2017 as amended upto 18/09/2017 For details click here
  • Instruction for filing of Special Leave Petition against Orders of Hon’ble High Courts staying Collection of Tax under GST. click here
  • Filling up the post of Deputy Director in Financial Intelligence Unit, India (FIU-IND), Delhi under Ministry of Finance, Department of Revenue on deputation basis.click here
  • Two notifications granting exemption from registration to job workers and suppliers of handicraft goods in specified cases.click here
  • GeM- Training schedule and PPT for HoD's.click here
  • Promotion/ Transfer/ Posting order in r/o Group 'A' Officers of CRCL under CBEC.click here
  • Transfer Policy in r/o Group 'A' Officers of CRCL under CBEC.click here
  • Notifications extending filing of GSTR-1, GSTR-2, GSTR-3 and GSTR-6 have been issued.click here
  • Suggestions to be send for Draft Expenditure Budget Manual, 2017 either through mail or fax latest by 15.09.2017-click here
  • Decisions of the GST Council on Services taken in the 21st GST Council Meeting held on 9 Sept 2017. -click here
  • List of goods where changes in GST rates have been recommended by the GST Council and increase in Compensation Cess rates of motor vehicles For details click here
  • Weekly newsletter from Chairman, CBEC to all officers and staff of CBEC-click here
  • Filing of GST return click here
  • Data regarding transfer of AIOs in the Zone- to be shared by 8th Sep 2017. click here
  • "Extension of due dates for furnishing details/Returns for the months of July, 2017 and August, 2017" - click here
  • Suggestions to be send for Draft Expenditure Budget Manual, 2017.- click here
  • "CGST Rules, 2017 as amended upto 30/08/2017 have been uploaded".- click here
  • Circular on System based reconciliation of information furnished in FORM GSTR-1 and FORM GSTR-2 with FORM GSTR-3B has been issued.-click here
  • Notification waving late fee for July, 2017 return has been issued
  • "Notification issued for further amendment of CGST Rules".-click here
  • Important information for field formations regarding LAN infrastructure and WAN Connectivity - click here
  • Draft Customs Brokers Licensing Regulations, (CBLR) 2017 has been uploaded. For details - click here
  • Observance of Rashtriya Ekta Diwas (National Unity Day ) on 31st Oct, 2017. click here
  • Charter of Functions of DGGST For Details click here
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.