News Flash
  • Scheme for grant of Cash Awards to meritorious children of Departmental officers/ staff for their performance in the 10th/12th standard Board Examinations held in March/April, 2016, 2017 and 2018-Click here
  • Weekly newsletter from Chairman, CBIC dated 16/11/2018Click here
  • RESULT OF EXAMINATION OF GST PRACTITIONERS HELD ON 31.10.2018 - Click here
  • Call for nominations for workshop for South Asian Sub-regional Economic Co-operation (SASEC) Customs Administration on Trade Facilitation Measures for Time Release Study from 26-27 November, 2018 - Click here
  • Corrigendum of RFP Dated 10.10.2018 for orgainizing International Attachment on Public Policy and Leadership for the 69th Batch of IRS (C&CE) Officer Trainees - Click here
  • Corrigendum to Notification 60/2018-Central Taxes dated 30.10.2018 issued
  • Calling of nomination for the Train the Trainer Workshop for Master Trainers on combating illegal trade in HCFCs being conducted by NACIN from 03-05 Dec, 2018 at Gangtok, Sikkim - Click here
  • Circular clarifying scope of principal-agent relationship for del-credre agent; circular clarifying TCS collection by Tea Board; and Corrigendum to Circular No. 57/31/2018-GST dated 4th September, 2018
  • Notification issued to exempt supply from PSU to PSU from applicability of provisions relating to TDS.
  • Weekly newsletter from Chairman, CBIC dated 02/11/2018Click here
  • Feedback and Action Room to facilitate GST Helpdesk set-up by CBIC for MSMEs - Click here
  • Departmental Examination for IRS (C&CE) Group "A" Officer Trainees to be held from 26th November to 01st December, 2018 in respect of 69th and 68th batch - Click here
  • Press Release regarding examination for GST Practitioners. Click Here for Eng   Hindi
  • Updated versions of 3 publications on MSME namely MSME flier, Detailed Booklet and Sectoral Publication are available on the CBIC website-GST> My GST >MSME - Click here
  • Nodal Officers for MSME outreach program Click here
  • Letter from Commissioner (GST) regarding MSMEs outreach program - Click here
  • Examination Notice for Departmental Examination of Group "C" (Havaldar/MTS) to the cadre of LDC for the year 2018-19 - Click here
  • D.O. Letter from DG, HRD regarding submission of Two Swachhta projects for the F.Y. 2018-19. Click here
  • Nomination For Two-Days' Training on "Prevention of Wildlife Trafficking" For Group 'A' Officers of CBIC on 12th & 13th November, 2018 at NACIN, Faridabad Click here
  • Notifications issued for extending the time limit for filing FORM GST ITC-04; and allowing filing of FORM GSTR-10 till 31.10.2018 for taxpayers whose registration has been cancelled before 30.09.2018.
  • Weekly newsletter from Chairman, CBIC dated 26/10/2018Click here
  • Circulars clarifying SOP on Cancellation of registration; and other miscellaneous issues related to refund, casual taxable person, Input Service Distributors and return of time-expired drugs issued
  • All CCAs field formations/ Directorates - draft RRs for the post of Sr. Private Secretary - inviting comments from stakeholders Click here
  • Nomination For Two-Days' Training Programme for officers of the rank of Commissioner, Principal Commissioner and Chief Commissioner of CBIC on "Greening of Offices" at iCED, Jaipur on 16th & 17th November, 2018 Click here
  • Swachhta Uday Booklet is available now.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.