We refer to CBEC Circular no. 933/23/2010-CX dated 16th August 2010, which says that valuation of goods cleared by Export Oriented Units (EOUs) to depots or consignment agents, from where the goods will be sold, should be done in accordance with Customs Valuation Rules, 2007. So, how are we (an EOU) to value the goods?
The Customs Valuation Rules, 2007 say that in cases where transaction value under Rule 3 cannot be applied, the value should be determined by proceeding sequentially from Rule 4 to Rule 9. If you have other sales of identical or similar goods, their prices can form the basis for determining the value of goods that you clear to depots. If you do not have clearances of identical or similar goods and you clear all your goods only to depots, you can consider the deductive value -- i.e., the price based on resale price of the goods less post-clearance expenses, etc. If such details are not available, you can adopt the computed value -- i.e., the price based on cost of manufacturing and selling the goods, plus a reasonable margin appropriate to your business. If such details are also not available, you may resort to residual method given in Rule 9 of the Customs Valuation Rules, 2007. You need to study these Rules carefully to determine the value.
We want to re-export imported goods that were warehoused in the customs bonded warehouse. The trouble is that the warehousing period is over. Will re-export be allowed?
If you make a request to permit re-export of the goods under Section 69 of the Customs Act, 1962, the request may be allowed even if the permitted period for bonding has expired and the demand notice has been issued, or it has been decided to put the goods under auction. Before permitting re-export in each such case, the period of warehousing under Section 61 of the Customs Act, 1962 has to be extended to enable you to export the goods within the permitted period of warehousing. In this connection, you may refer to CBEC Customs Circular no. 3/2003 dated 14.01.2003.
We have not claimed Focus Market Scheme (FMS) benefits although we are eligible. Can we now claim the benefits for time-barred cases?
Para 3.11.8 of the Handbook of Procedures, Vol. 1 (HB-1) gives the last date for filing FMS applications. Usually, it is 12 months from the date of export, or six months from the date of realization, or three months from the date of printing/release of the shipping bill, whichever is later. For shipments made prior to the inclusion of a country under the scheme, the last date for filing applications is six months from the end of the month when the concerned country was included in the scheme. You get a further two years time after the said last date for submitting the application, but a late cut will be imposed as per Para 9.3 of HB-1.