Thursday, October 25, 2007

What is export? The export in its simplest form is taking goods outside India.Such goods are called export goods.Any person who is owner or holding himself out to be owner of of such export goods is exporter.
The exporter has to declare value of the export goods to the Customs departmnet.But what is value to these export goods to be decalred before the Customs department.

The definition of value in relation to any goods is given in section 2(41)of the Customs Act 1962.The value of export goods to be determined in accordance with the provision of sub section (1) of section 14 of the Act.

Therefore understanding of section 14(1) is pre-requisit to understand the spirit of the Export Valuation Rules 2007.As per section 14(1) of the Act,The value of export goods is deemed to be price at which such or like goods are ordinarily sold,or offered for sale in course of international trade.The buyer and seller are not related and price is sole consideration for the sale or offer for sale.The section 14(1) is reproduced below:
``14. Valuation of goods for purposes of assessment. - (1) For the purposes of # [the CustomsTariff Act, 1975 (51 of 1975)], or any other law for the time being in force whereunder a duty ofcustoms is chargeable on any goods by reference to their value, the value of such goods shall bedeemed to be$ the price at which such or like goods are ordinarily sold, or offered for sale, fordelivery at the time and place of importation or exportation, as the case may be, in the course of## [international trade, where-(a) the seller and the buyer have no interest in the business of each other; or(b) one of them has no interest in the business of other, and the price is the sole consideration forthe sale or offer for sale] :### [Provided that such price shall be calculated with reference to the rate of exchange as in force on thedate on which a bill of entry is presented under section 46, or a shipping bill or bill of export, as the case maybe, is presented under section 50;]``.


The important words are `` valuation for purpose of Assessment",``For the purposes of the CustomsTariff Act, 1975 (51 of 1975)]`` ,`` any other law for the time being in force `` , ``the value of such goods shall bedeemed to be the price ``,``such or like goods``,``ordinarily sold, or offered for sale``,fordelivery at the time and place of exportation``,``in the course of international trade``,``the seller and the buyer have no interest in the business of each other``,``one of them has no interest in the business of other``, ``the price is the sole consideration for the sale or offer for sale`` which defined the scope of the export valuation in the Customs Act 1962.

What is valuation of goods for Customs pupose


(18) "export", with its grammatical variations and cognate expressions, means taking out of Indiato a place outside India;(19) "export goods" means any goods which are to be taken out of India to a place outside India;(20) "exporter", in relation to any goods at any time between their entry for export and the timewhen they are exported, includes any owner or any person holding himself out to be the exporter;