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Customs: Suggestions on draft Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2022
Customs: Suggestions on draft Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2022

October 31, 2022

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The Central Board of Indirect Taxes and Customs (CBIC) sought the draft rules pertaining to Customs Valuation of imported goods for feedback from stakeholders (Proposed Rules).

Based on inputs received from the Industry, we have requested CBIC to consider the following suggestions:

  1. The proposed rules do not provide a mechanism for prior consultation with the affected class of importers either before preliminary examination by screening committee or before detailed examination by evaluation committee or before evaluation of suggestions by Board and notifying the goods as identified goods. We have requested the government to provide a prior consultation/opportunity of being heard to the affected class of importers before screening committee shares the preliminary examination report with evaluation committee.
  1. Rule 13 of the proposed rules specifies class of importers on which these rules will not apply. Given the broad exception provided in the proposed rules,  we have requested the government to specify that following class of importers would not be covered by the proposed Rules:
  1. Products imported under Information technology Agreement (ITA)
  2. Importers availing benefit under Export Promotion Capital Goods (EPCG), Advance Authorisation Scheme, Export Oriented Units scheme like Software technology Parks of India (STPI), Export Promotion Capital Goods (EPCG), etc.
  3. Matters where Special Valuation Branch report is finalised/ is pending finalisation
  4. Imports made by Special Economic Zones (SEZ) units/ SEZ developer
  1. Companies that have obtained Authorised Economic Operator (AEO) accreditation have already demonstrated their trustworthiness in terms of indirect tax compliance perspective. Therefore, burdening AEO status holder (atleast AEO T2 and above) with the new valuation rules would disincentive AEO status holders and would have a detrimental impact on the AEO program's growth/vision. Hence, we have requested CBIC to provide an exception that the proposed rules will not apply to "AEO status holder".
  1. Requiring a class of importers to justify the valuation adopted for imports for a period ranging from 1 year to 2 years (under Rule 8(5)(h) of the proposed rules) would be burdensome and may add to compliance burden. Hence, we have requested the government to reduce this duration to 6 months.

Copy of our detailed submission is attached for your reference. For more information, kindly write to tejasvi@nasscom.in


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20222014-customsvaluationrules-suggestions-nasscomsubm.pdf

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