OFFICE OF THE COMMISSIONER
OF CUSTOMS(IMPORT)
DIST. RAIGAD,
F.
No. S/26-Misc-2195/05 VA
Date: 14.2.2008
STANDING
ORDER NO. 11 /2008
-----------------------
1. The
Commissioner of Customs (Import), New Custom House, Mumbai, had issued Circulars/letters to all Chief Commissioners
of Customs vide F. No.S/26-757/97 VA
dated 08.09.05, 27.10.05 and 12.12.05 giving the suggested approach on the valuation of Ball and Roller Bearings.
The letters suggest: (i) to follow the prices
mentioned in the price lists of reputed branded manufacturers of Bearings, (ii)
to give discounts as mentioned in annexure to the letter dated 08.09.05 over
and above the manufacturers price list & (iii) to follow a minimum cut off
price of USD 1.6 per Kg. on the basis of contemporary import prices of Bearing
Quality Steel. The letter dt.
2.
The Directorate General of Valuation, Mumbai has reviewed the valuation
of imported ball and roller bearings(CTH 8482) and has issued fresh guidelines
for the valuation of the subject item vide Valuation guidelines No. 1/2008
dated 6.2.2008 under F. No. VAL/NIDB/9/2006.
3.
Accordingly the following guidelines may be followed
for the valuation of ball and roller bearings(CTH 8482):
(i) The well known brands/ models may be
valued based on the price lists of manufacturers which are generally updated
every year. The individual price lists may be obtained from the local agents or
importers. In cases were authenticity of price list is in doubt and
verification abroad is needed , the same may be referred to DGRI under
intimation to DGOV so that the matter could be followed up and other
field offices could be alerted.
(ii) In the letter F. No.S/26-757/97 VA dated
08.09.05, of the Commissioner of Customs (Import), New Custom House, Mumbai,
certain discounts were considered admissible and they are found reasonable. The
discounts may be allowed as per the price lists. Further, trade discount may be
allowed provided that (i) the trade discount is
offered by the seller to all buyers across the board uniformly and (ii) the
discount is offered prior to the importation of goods. In this regard the existing case laws of
(iii) In respect of bearings which are imported
without declaring any brand / model, the declared values may be compared with
similar products of the same country of origin and in case of low declared values, comparisons should be made with the minimum cut-off
value based on cost of production illustrated in this Standing Order.
(iv) If the declared values of imported Bearing
are found to be less than (i) the price mentioned in
the price list or (ii) the contemporaneous imports of identical/ similar goods
as per NIDB data or (iii) the minimum cut off price based on the contemporary
import prices of Bearing Quality Steel, then the declared value may be taken up
for rejection under Rule 12 of Customs Valuation (Determination of Value of
Imported Goods) Rules, 2007 (CVR07). The goods may be revalued following the
subsequent methods of valuation taking into account the information available
in NIDB and other relevant factors.
(v) Minimum Cut-Off Value: While assessing
the Bills of Entry pertaining to the import of
bearings the declared value may be compared with a minimum cut-off value
arrived by Cost construction method based on the contemporary import prices of
Bearing Quality Steel as detailed below
(i) Average cost of raw
material per Kg
.. Rs.A
(ii) Add : Wastage @
30% as per SION of DGFT
Rs.B
(iii) Total Material Cost to manufacture one Kg. of
Bearing
.. Rs.C=A+B
(iv) Add. Total Manufacturing Cost to
manufacture one
Kg. of
Bearing taking into account other fixed and variable
costs and Charges @ 100%
Rs.D=C
(v) Total cost of raw
material and manufacturing cost Rs.E= (C+D)
(vi) Less: Recovery of wastage of 30% viz.300 gms by
way of selling scrap at contemporary import
prices of scrap
Rs.F
(vii)Total Cost
Rs.G=E-F
The Commissioner of Customs (Import), NCH, Mumbai in
his letter dated 8.9.05 cited above had fixed a minimum cut-off value of USD 2
Per Kg. on the basis of cost of Bearing Quality Steel @ USD 870 PMT in
September 2005. This was subsequently revised in Dec 2005 to USD 1.6 Per Kg. on
the basis of cost of bearing Quality Steel @ USD 500-600 PMT.
(vi) The DGOVs latest study on the basis of NIDB
data and other sources for the period from
|
COO |
Weighted Average of Assessed values Unit Price |
Minimum Cut off Value per Kg. |
||
|
Rs. / Kg. |
USD PMT |
USD |
Rs. |
|
|
|
39.20 |
981.93 |
2.52 |
100.5 |
|
|
33.01 |
826.96 |
2.12 |
84.5 |
|
European Countries |
66.43 |
1663.96 |
4.27 |
170.5 |
(vii) The cut
off prices indicated above are based on the data for the quarter October to
December 2007. This would need periodic revision based on price variation of
bearing quality steel and this exercise may be taken up by Custom House in
consultation with DOV preferably once in a quarter. The minimum cut-off value
for the import of bearings should not be disturbed unless the calculations show
a variation of at least 10% which will require an increase/ decrease in the
price of bearing grade steel by about 20%. The data for the assessed value for
the import of Bearing Quality Steel may be taken for a minimum period of 3
months from NIDB for any revision in the minimum cut-off value of bearings.
4.
The above guidelines may be followed with immediate
effect.
Sd/-14.02.2008
(SANJEEV
BEHARI)
Commissioner of Customs
JNCH, Sheva.