Methods of valuation of export goods - CBEC's Customs Manual 2023 - Customs

10. Methods of valuation of export goods: 10.1 The provisions of Section 14(1) of the Customs Act, 1962 specifically cover the valuation of export goods. Also, the Customs Valuation (Determination of Value of Export Goods) Rules, 2007 have been framed to provide a sound legal basis for the valuation of export goods and check deliberate overvaluation of export goods and mis-utilization of value based export incentive schemes. 10.2 Rule 3 of the Customs Valuation (Determination of Value of Export Goods) Rules 2007 that are framed in a format similar to the said Valuation Rules, 2007 for the imported goods emphasizes for acceptance of the transaction value, which is the primary basis for valuation of export goods. In cases where the transaction value is not accepted, the valuation shall be done by application of Rules 4 to 6 sequentially. As per Rule 7 , exporter has to file Export Value Declaration relating to the value. Also, the value of the export goods declared by the exporter can be rejected under Rule 8 . 10.3 Wherever there are doubts about the declared value of export goods and an investigation/enquiry is being undertaken to determine whether or not the Declared Value should be accepted, the export consignments should not be ordinarily detained. Due process envisaged under Rule 8 , for rejection of declared value and consequent redetermination of value may be undertaken by applying valuation Rules sequentially. 10.4 The explanation to Section 14 provides for the determination of rate of exchange for the conversion of Indian currency into foreign currency and foreign currency into Indian currency which will be used by the assessing officer to arrive at the value of exported and imported goods respectively. Currently, such values are notified for 20 currencies. For the purpose of valuation of goods, foreign currency and ''Indian currency have the same meanings assigned to them in terms of clause (m) and clause (q) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999) respectively.]