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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART-II, SECTION-3,
SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
NOTIFICATION
No. 03/2023-Customs (N.T.)
New Delhi, the 11th January, 2023
G.S.R. .(E).- In exercise of the powers conferred by section 156 read with section 14 of the
Customs Act, 1962 (52 of 1962), the Central Government, hereby makes the following rules,
namely:-
1. Short title and commencement.- (1) These rules may be called the Customs (Assistance
in Value Declaration of Identified Imported Goods) Rules, 2023.
(2) They shall come into force on 11th day of February, 2023.
2. Definitions.- (1) In these rules, unless the context otherwise requires,-
(a) "Act” means the Customs Act, 1962 (52 of 1962);
(b) “Additional Director General” shall include “Principal Additional Director
General”;
(c) “Chief Commissioner” shall include “Principal Chief Commissioner”;
(d) "class of imported goods" means imported goods that are within a group or range of
imported goods produced by a particular industry or industrial sector and includes
identical goods or similar goods;
(e) “Commissioner” shall include “Principal Commissioner”;
(f) “Director General” shall include “Principal Director General”;
(g) “Evaluation Committee” means the Committee constituted under rule 4;
(h) “identified goods” means any class of imported goods, or a subset thereof, which
have been specified by the Board under rule 5;
(i) “Order” means an order issued under rule 5; and
(j) “Screening Committee” means the Committee constituted under rule 3.
(2) The words and expressions used herein and not defined in these rules but defined in the
Act or in the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007,
shall have the same meanings as assigned therein to them.
3. Constitution of the Screening Committee.- (1) There shall be a Screening Committee of
the following members namely:-
(a) Director General of Valuation who shall also be the Convenor of the Committee;
(b) Director General of Revenue Intelligence;
(c) Director General of Analytics and Risk Management; and
(d) Conveners of National Assessment Centre constituted by the Board, if any,
pertaining to the class of goods under consideration.
(2) The Directorate General of Valuation shall be the Secretariat of the Screening Committee.
(3) The Screening Committee shall hold its meetings regularly and as and when necessary for
efficient conduct and timely discharge of its functions under these rules.
4. Constitution of the Evaluation Committee.- (1) There shall be an Evaluation Committee
of the following members namely:-
(a) Additional Director General of Valuation who shall also be the Convenor of the
Committee;
(b) Additional Director General (Headquarters) of Directorate General of Revenue
Intelligence;
(c) Additional Director General (National Customs Targeting Centre – Cargo) of
Directorate General of Analytics and Risk Management; and
(d) Members of Working Group on Valuation and related issues of the National
Assessment Centre constituted by the Board, if any, pertaining to the class of goods
under consideration.
(2) The Directorate General of Valuation shall be the Secretariat of the Evaluation Committee
(3) The Evaluation Committee shall hold its meetings regularly and as and when necessary
for efficient conduct and timely discharge of its functions under these rules.
5. Procedure for Specification of identified goods.- For the purposes of clause (iv) of the
second proviso to sub-section (1) of section 14 of the Act, where in respect of any class of
imported goods or a subset thereof, the Board, having regard to the trend of the declared
value of such goods or any other relevant criteria, has reason to believe that such goods may
not be declared at their truthful or accurate value but below it, the Board may, by an Order,
specify such goods as identified goods in accordance with rule 10.
6. Sources for examining cases for identified goods.- (1) For the purpose of rule 5, the
Board shall rely upon a written reference made to it electronically by any person having
reason to believe that the value of any class of imported goods or a subset thereof may not be
declared truthfully or accurately:
Provided that the reference may also be made by an officer of Customs, namely a
Commissioner or Additional Director General, or a person representing any other
Government Department.
(2) The written reference referred to in sub-rule (1) shall be accompanied with -
(a) disclosure of name, full address, mobile number, email and other contact details of
the person, along with proof of identity and proof of address:
Provided that proof of identity and proof of address shall not be required where the
person making the reference represents a Government Department;
(b) complete description and the 8-digit HS Code of the imported goods, including,
where appropriate, aspects such as technical literature, specifications, composition,
quality, brand and model, along with the country of origin or ports of despatch;
(c) the manner in which or method by which value for such goods is declared below
their truthful or accurate value by importers;
(d) information with attached documentary evidence, data and analysis bringing out the
basis put forth in support of the claim made in the written reference;
(e) an approximate quantification of the extent of undervaluation;
(f) other sources of reliable information, if any, that may be considered while
examining the reference; and
(g) suggestions, if any, of additional obligations and checks that may be considered
while examining the reference.
(3) The written reference received under this rule shall be forwarded electronically by the
Board for examination to the Screening Committee.
7. Preliminary examination by Screening Committee.- (1) The Screening Committee shall
make a preliminary examination of the written reference forwarded by the Board under sub-
rule (3) of rule 6, in order to decide whether it, or part thereof, is a case to be taken up for
detailed examination.
(2) For the purposes of preliminary examination, the contents and accompanying information
with the written reference shall be scrutinized and material aspects taken into account along
with the relevant trends of declared values or any other relevant criteria.
(3) The preliminary examination and recording of preliminary findings, of the Screening
Committee shall be signed by each member of the Screening Committee and shall be
completed preferably within fifteen days, but no later than twenty-one days from the date of
forwarding of written reference by the Board.
(4) Where on the basis of preliminary findings, the written reference has been found suitable
for detailed examination, the reference, or part thereof, as the case may be, shall be deemed to
have been taken up for detailed examination on the date the preliminary findings were
recorded.
(5) Where on the basis of preliminary findings recorded by the Screening Committee the
written reference is not found suitable for detailed examination, the Screening Committee
shall record the reasons thereof and close the said reference.
8. Detailed examination by Evaluation Committee.- (1) The written reference or part
thereof, found suitable for detailed examination in terms of sub-rule (4) of rule 7 shall be
comprehensively examined by the Evaluation Committee to assess the likelihood, based on
the preponderance of probabilities, whether the value of the relevant class of goods or a
subset thereof may not be declared truthfully or accurately and for this purpose, the
Evaluation Committee may undertake data analysis and take into account the following
additional information such as –
(a) trend in international prices from relevant sources keeping in view quality and
nature of goods;
(b) information received through stakeholder consultation or disclosures;
(c) reports or certificates of experts; academic papers; research papers; published
reports; open-source intelligence; reports originating from source country or despatch
ports, including reports of overseas enquiry or verification;
(d) disclosures made under applicable provisions of the Act, rules and regulations made
thereunder or under any other law that may have relevance for the time being in force;
(e) costing in relation to manufacturing or assembly of the goods;
(f) additional information from the person who made the reference; and
(g) reliable information from any other source.
(2) The reasoned report of the Evaluation Committee shall be recorded, with each member of
the Evaluation Committee signing the report, in not more than thirty days of being taken up
for detailed examination.
Provided that, having regard to the circumstances under which the Evaluation
Committee may have been prevented from recording its report within specified period, the
Convenor of the Screening Committee may, for the reasons recorded in writing, extend the
said period for a further period of not more than thirty days.
(3) Where the said reasoned and detailed examination report concludes otherwise than as
specified in sub-rule (4), the Evaluation Committee shall also record closure of the reference
and the report shall stand transferred to the Screening Committee for filing.
(4) Where the reasoned and detailed examination report of the Evaluation Committee
concludes the likelihood that the value of the relevant class of goods or a subset thereof may
not be declared truthfully or accurately, the report shall specify, –
(a) complete description of the class of imported goods, or a subset thereof, with 8-digit
HS Code;
(b) the brands, if any, which have been noticed in connection with the said likelihood;
(c) the precautionary unit value expressed in terms of items (d) and (e) which may be
used by the Customs Automated System to require the fulfilment of additional
obligations by the importer and the checks to be exercised, where the declared value is
less than the precautionary unit value;
(d) the particular Unique Quantity Code which shall be necessarily used by the importer
to declare the value in the bill of entry;
(e) the technical or other specifications related to the value of the goods necessary to be
declared in the bill of entry such as make, model, brand, grade, size, quality,
composition (percentage of ingredients) and quantity declared in the specified Unique
Quantity Code;
(f) other additional obligations of the importer for demonstrating the truthfulness and
accuracy of the declared value;
Explanation: For the purposes of clause (f), the Evaluation Committee, after examining
the facts and circumstances of the case, shall specify in its report other additional
obligations of the importer which may include inter alia furnishing manufacturer
invoice, manufacturer test report, expert certification issued in the country of origin,
manufacturing process from the manufacturer, costing in relation to manufacture or
assembly of goods, purchase order or contract;
(g) the checks to be exercised with respect to the imported goods, including the
circumstances and manner of exercising them; and
(h) the duration, not below one year and not exceeding two years in the first instance,
for which the said additional obligations and the additional checks shall be applied.
(5) The report referred at sub-rule (4) shall include the nature of imports to which these rules
may be considered for not being applied in terms of clause (j) of rule 13.
(6) The aspects in the report referred at sub-rule (4) shall be such as are amenable to
implementation using the Customs Automated System.
9. Screening Committee to confirm report and recommend to the Board. - (1) The
detailed report of the Evaluation Committee, referred at sub-rule (4) of rule 8, shall stand
transferred to the Screening Committee for confirmation.
(2) The Screening Committee shall confirm that the report of the Evaluation Committee is
complete in terms of these rules and for this purpose shall rectify deficiencies, if any, therein.
(3) The Screening Committee shall recommend to the Board upon the report referred at sub-
rule (4) of rule 8 or the rectified report referred at sub-rule (2), as the case may be, as having
been confirmed to be complete in terms of these rules.
(4) The recommendation of the Screening Committee along with the report referred at sub-
rule (3) above, shall be made within fifteen days of the report of the Evaluation Committee.
10. Board to consider the recommendation of Screening Committee.- (1) The Board shall
consider the recommendation made by the Screening Committee under sub-rule (4) of rule 9,
and if satisfied that the recommended report should be accepted, it may issue Order under
rule 5 specifying therein-
(a) complete description of the identified goods with 8-digit HS Code;
(b) the particular Unique Quantity Code which shall be necessarily used by the importer
to declare the value in the bill of entry;
(c) the technical or other specifications necessary to be declared in the bill of entry;
(d) other obligations of the importer, if any;
(e) the checks to be exercised with respect to the imported goods, including the
circumstances and manner of exercising them; and
(f) the duration, not below one year and not exceeding two years in the first instance,
for which the said Order shall be valid.
(2) The Board shall also consider the review report made by the Screening Committee under
sub-rule (3) of rule 12, and if satisfied with the reasons and recommendations made therein,
shall make the appropriate changes by issuing an Order under rule 5 with respect to the
previously specified identified goods.
11. Procedure in respect of identified goods.- (1) An importer of identified goods shall be
required to declare inter alia the value of goods using the Unique Quantity Code specified in
the Order and the aspect specified at clause (c) of sub-rule (1) of rule 10 at the time of filing
bill of entry.
(2) Where required by the Customs Automated System, the importer of identified goods shall
also fulfill the specified additional obligations, and the assessment of goods or the goods
themselves shall be subjected to specified checks so as to enable and assist the importer to
demonstrate the truthfulness and accuracy of the declared value.
(3) Where the importer has not already fulfilled the specified additional obligations on the
Customs Automated System, the proper officer shall provide a time period of ten days for
fulfilling such obligations.
(4) The proper officer may, in addition to the specified obligations and for reasons to be
recorded in writing, ask for further information and documents from the importer to examine
the truthfulness and accuracy of the declared value.
(5) On the request of the importer, the proper officer may provisionally assess and clear the
goods, subject to importer furnishing appropriate security in terms of section 18 of the Act.
(6) Where, upon production of requisite information or documents and fulfilment of specified
obligations or exercise of specified checks, the proper officer is satisfied with the truthfulness
and accuracy of the declared value, he shall accept the declared value for the purpose of these
rules.
(7) Where the importer does not provide requisite information and documents or does not
fulfil other obligations in the time specified under these rules, or where on the basis of the
information and documents received from the importer or results of other checks exercised,
the proper officer still has reasonable doubt about the truth or accuracy of the value declared
in relation to the identified goods, the further proceedings shall be taken in accordance with
rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
12. Review.- (1) The Screening Committee shall, on the expiry of half of the validity period
of the Order issued under rule 5, initiate a mid-term review to assess whether the identified
goods may be de-specified either before the expiry of the validity period or not, or the
validity period needs to be extended.
(2) Apart from the mid-term review under sub-rule (1), the Screening Committee may
conduct a review before mid-term, or as and when needed.
(3) Based on the review conducted, the Screening Committee shall make a reasoned report
with recommendations to the Board to withdraw or extend the Order issued under rule 5
related to the identified goods or to alter or delete any of the parameters specified by the
Board while specifying the identified goods in accordance with rule 5.
(4) The said report shall be made to the Board at least thirty days prior to the expiry of
validity period of the Order.
13. Exceptions.- These rules shall not be applied to, –
(a) imports not involving duty;
(b) goods for which tariff value has been fixed by the Board in terms of sub-section (2)
of section 14 of the Act;
(c) goods which attract import duty on specific rate basis;
(d) imports made in terms of authorization or license issued under duty exemption
scheme of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) in
which the inputs imported prior to export are physically contained in the export
product;
(e) imports where buyer and seller are related and an investigation on relationship has
already been contemplated or finalized;
(f) Project imports;
(g) imports by Government, Public Sector Undertakings;
(h) imports made in non-commercial quantities;
(i) goods imported for the purpose of re-export; or
(j) imports specified by the Board.
14. Power to relax.- Where the Screening Committee informs that it is unable to comply
with its duties within the time period as specified under these rules, for reasons beyond its
control, even while it has met regularly and as and when necessary for efficient conduct and
timely discharge of its functions, the Board may after considering the case allow for
compliance within a further time period not exceeding thirty days.
15. Digital Record Keeping.- With effect from such date as may be specified by the Board
in this behalf, the processes specified in rule 6, rule 7, rule 8, rule 9 and rule 12 shall be
enabled and processed on an electronic application, set up and maintained by the Directorate
General of Valuation.
F.No. 466/32/2022-Cus V
(Harish Kumar)
Under Secretary
