Rules To Address Systematic Undervaluation Of Imported Goods

The Ministry of Finance has notified the Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023, ("Rules"), vide Notification No. 03/2023-Customs (N.T.), dated 11th January 2023. The Rules have come into effect from 11th February 2023. The Rules have been issued to keep systematic undervaluation of goods in check.

Customs valuation under the Customs Act, 1962

Section 14 of the Customs Act, 1962 ("Act") provides for valuation of goods imported into India in order to determine the applicable import duty on such goods. However, pursuant to concerns regarding undervaluation of goods, clause (iv) was inserted in the second proviso to Section 14(1) of the Act, by virtue of the Finance Act, 2022. The newly inserted clause provided for rules to be made for establishing checks in order to apprehend cases where the value of goods was not declared truthfully and thus, creating additional obligations on importers. The Customs Valuation Rules 2023