Valuation of Goods Manufactured by units working under the 100% EOU Scheme - Regarding - Central Excise - 268/85-CX. 8,

Valuation of Goods Manufactured by units working under the 100% EOU Scheme - Regarding F. No. 268/85-CX. 8, Dated 29-9-1994 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Valuation of Goods Manufactured by units working under the 100% EOU Scheme - Regarding. I am directed to invite a reference to Board's instructions F.No. 202/12/84-CX.6 dated 29-5-1984 (Circular No. 23/84-CX. 6), prescribing the manner of assessment of goods manufactured in EOU/EPZ units and cleared in the DTA, and to say that the Board has reviewed the said instructions consequent to certain difficulties expressed by the assessing Officers and the Trade in the working of these instructions. It may be recalled that the valuation of the goods was instructed to be carried out under Rule 8 of the Valuation Rules (best judgment clause) keeping in view the following factors : (a) Sale (Invoice) Price of the goods under assessment; (b) Sale price of other consignments of identical/similar goods; (c) Export price of identical /similar goods; and (d) Nature of sale transaction, etc. It was indicated in the instructions that a reference could be made to the nearest Customs House for any assistance in determining the Value. It has been represented to the Board that the Assessing Officers invariably write to the Customs Houses in order to ascertain the CIF price of similar goods being imported in the country leading to delays in assessment of the goods. Further, it has been represented that such comparison is unrealistic because the quality of the goods imported and those manufactured in the EOU/EPZ units may not always be comparable. In the aforesaid background, it is hereby clarified that while determining the value of such goods for clearances to DTA, where invoice price of such goods under assessment is in the nature of a 'transaction value' (e.g., more or less, corresponding to the FOB value in the case of goods of identical nature) and in conformity with the provisions of Rule 3 of the revised Customs Valuation Rules, 1988, such invoice value can be accepted for purposes of assessment. In such cases, therefore, there would be no need to ascertain the price of identical or similar goods imported through the various Customs Houses or goods produced by other undertakings. However, in other circumstances, that is where the parameters given in Rule 3 of the said Rules are not satisfied (for example, in case of sales to sister concerns or interrelated concerns or where there are other returns to believe that the invoice price does not represent the 'transaction value') recourse may be taken to determine the assessable value as indicated in Board's Circular No. 23/84-CX.6 and reiterated in para 1 above, by suitable enquiries.