VALUATION/ASSESSMENT PRACTICE IN REPECT OF EXPORT OF IRON ORE-REG. - Customs - 27/2015

GOVERNMENT OF INDIA OFFICE OF THE COMMISSIONER OF CUSTOMS (PORT) CUSTOMS HOUSE, 15/1 STRAND ROAD, KOLKATA-700001 PUBLIC NOTICE 27/2015 DATED 22.07.2015 SUBJECT:- VALUATION/ASSESSMENT PRACTICE IN REPECT OF EXPORT OF IRON ORE-REG. The board has received reference relating to valuations of iron ore entered for export has been examined by the board. 1. It has been reported that Iron ore, bay its nature, undergoes a change in moisture Fe content with the passage of time including during transport. The Iron ore is tested both at the load port and at the port of discharge for ascertaining its quality and price. The commercial contracts governing its sale, often, contain provisions to adjust the amount payable depending upon the test report at the port of discharge. It is also reported that exporters present provisional invoices at the time of export since prices are to be finally tests at discharge port. 2. The matter has been examined. In order to bring in uniformity, transparency and consistency in assessment of export of Iron Ore, fines and pellets, it has been decided that the following procedure shall be adopted; (a) When a consignment is entered for export of iron ore, fines or pellets, samples shall be drawn in presence of Customs following the procedure laid down by the bureau of Indian standards for drawal of samples of Iron ore, fines and iron ore pellets and sent or testing. (b) The declared value of the export goods shall be scrutinized in relation to the provisional invoice, contract, weight, price, etc., by the proper officer in terms of the provisions of section 14 and the Customs Valuations (Determination of Value of Export Goods) Rules, 2007 and the Shipping Bill may be provisionally assessed. In case of the transaction being declared or found to be between related parties, procedures governing related party transaction shall be followed. (c) Upon receipt of the load part test report and discharge port test report, the proper officer shall compare the two reports with the terms set out in the contract. Where variations in the two test reports are within tolerance limits provided in the contract and do not impinge upon the declared price, the proper officer may proceed to finalize the provisionally assessed shipping bill in terms of the provisions of Section 14 of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007 . (d) in cases where the load port test report and discharge port test report show a variation, so as to impinge upon the price, the proper officer shall proceed to re-determine in the value of the goods in terms of Customs Valuation (Determination of Value of Export Goods) Rules, 2007 . In so case, shall a price based upon the average of the two test reports be accepted for the purposes of arriving at the assessable value. (e) In cases where the transaction is being declared or is found to be between related Parties, while the above procedures will continue to be followed, the finalization of assessment shall be done by following instructions governing the investigation of such cases by SVBs. (f) This will be ensured that the shipping bills are finally assessed within 30 days of the receipt of all documents. However, this time limit shall not apply to cases under investigation for related party transaction, which shall be governed by the circular relating to investigations. SVBs. 4. The receipt of Bank Realisation Certificate shall be monitored for the purposes of comparisons with the final invoices submitted by the exporter to satisfy the accuracy of assessed values. 5. Any difficulty faced, if any. May be brought to the notice of this office. F. No.S60(Misc.)-126/2013A(G)(Pt.) Dated 22.07.2015 (Dr. N.K. Soren) Commissioner of Customs (Port) Customs House; Kolkata