F.No.332/5/99-TRU/Cus.V

Circular NO.34/1999-Cus date 18/6/1999

Subject : Specific rates of duty on Polymers

It has been brought to the notice of the Board that in respect of several item of imports wide variation between the declared import values and normal prices or prices indicated in accredited journals which publish traded prices for various commodities is being observed. In particular, commodities prone to such under-declaration of value are stated to be polymers such as LDPE, HDPE, PP, ferrous and non-ferrous scrap, tin plate waste and steel rolled products.

2. The Directorate of Valuation has been, from time to time, circulating amongst the Customs formations, the published prices for the above mentioned commodities as also assessable values accepted by various Custom House. This Directorate has also been disseminating information about specific instances of under-valuation. Though Customs House, Air Cargo Complexes and ICDs have been using the information supplied by the Dte. of Valuation for determining the assessable value of imported products, there have been cases where declared values, found to be much less than the indicative prices circulated by the Dte. of Valuation, have been accepted. This gives room to representations from the trade and industry and undue advantage to some and should be avoided.

3. It is, imperative that uniformity in valuation practices should prevail over the country. Any deviation of divergence should be supported by sound reasons and justified grounds. All the Customs formations are hereby advised to consult the Dte. of Valuation or the Dte. General of Revenue Intelligence in cases wherever under-declaration of value is suspected.

4. The price information circulated by the Dte. of Valuation should also be used to determine correct assessable values. Efforts should also be made to determine the value which reflects the normal prices in the course of the international trade. Any attempt on the part of the importers to under-declare the value should be kept under close watch and steps should be taken to curb fraudulent practices by taking pre-emptive checks.

Sd/-
(Rim Jhim Prasad)
Under Secretary to the Govt. of India

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