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TMI BlogValuation of second hand machineryX X X X Extracts X X X X X X X X Extracts X X X X ..... ard has received representations from other Ministries, trade bodies and traders regarding issues arising from the interpretation of Board's circular no. 4/2008 - Cus dated 12 th February 2008 . The circular requires that field formations rely upon a chartered engineer's inspection report while valuing imports of second hand machinery and that inspection/appraisement reports issued at the port of loading should be accepted. The circular also states that there is no need to specify the agencies whose certificates alone would be accepted. It has been ascertained from field formations that the present practice in this regard is that if an importer produces a chartered engineer's appraisement report issued at the load port, with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht about prior to their importation. Similarly, other costs such pre-shipment inspection, dismantling and crating charges may be incurred by the buyer after the sale of the goods. Costs of all such elements need to be determined for the purpose of arriving at the value under section 14 of the Customs Act . Thus, there may be instances where the requirements of Rule 3 of the Valuation Rules are not met, in which case, the value for imposition of duty must be determined under one of the subsequent methods of valuation applied in sequential order. 5. In view of the nature of goods, there may be certain difficulties in applying Rule 4 or 5 of the CVR, 2007 . These difficulties arise from the fact that the goods being valued are use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Given the nature of challenges in computing the value of second hand machinery under Rule 9 . and the need to ensure that the approach applied reflects commercial reality and results in a value which is fair, and is arrived through uniform processes by all custom houses, it is felt that it is necessary to obtain inspection / appraisement reports from qualified neutral parties. 10. For this purpose, the Board has decided that Inspection /Appraisement Reports issued by Chartered Engineers, or their equivalent, based in the country of sale of the second hand machinery shall be accepted by all Custom Houses. For the purposes of uniformity, the format in which inspection/appraisement reports shall be prepared by the Chartered Engineer is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time ( para 2.59 of Handbook of Procedures 2015-20 refers). d). At customs stations where agencies notified by DGFT are not present, importers may continue to avail of the services of locally empaneled chartered engineers. e). In cases where the report is to be prepared by the agencies in India notified by DGFT or the chartered engineers empaneled by Custom Houses the same shall be in the Form B annexed to this circular. f). The value declared by the importer shall be examined with respect to the report of the chartered engineer Similarly, the declared value shall be examined with respect to the depreciated va,ue of the goods determined in terms of the circular No. 493/124/86-Cus VI dated 19/11/1987 and dated 4/1/1988. If such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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