MANU/CUCR/0006/2020

Ministry : Ministry of Finance

Department/Board : CBEC Customs

Circular No. : 07/2020-Customs

Date : 05.02.2020

Notification/ Circulars Referred : Circular No. 25/2015-Customs dated 15th October, 2015 MANU/CUCR/0025/2015;Circular No. 493/124/86-Cus VI MANU/CUCR/0012/1988

Citing Reference:
Circular No. 25/2015-Customs dated 15th October, 2015 MANU/CUCR/0025/2015  Referred

Circular No. 493/124/86-Cus VI MANU/CUCR/0012/1988  Referred

To,

All Principal Chief Commissioners/Chief Commissioners of Customs,
Principal Directors General/Directors General of Customs,
Principal Commissioners/Commissioner of Customs.

Madam/Sir,

Valuation of second hand machinery

Representations have been received from the trade regarding Circular No. 25/2015-Customs dated 15th October, 2015 on valuation of second hand machinery. For this purpose, the circular requires customs to rely upon inspection report either issued at the port of loading by overseas Chartered Engineer or issued upon import by a pre-shipment inspection agency (PSIA) notified by DGFT, or by a chartered engineer empanelled by the Custom House where the DGFT approved PSIAs are not available.

2. It has been represented that the PSIAs empanelled by DGFT are insufficient in number leading to delay in clearances. It has also been informed that PSIAs empanelled by DGFT are not qualified for appraising second hand machinery.

3. In this regard, DGFT vide O.M. No. 01/93/180/51/AM-16/PC II(B)/E-1500/176 dated 3rd September 2019, has clarified that PSIAs are meant only for certifying that consignments of metal scrap are free of radio-active agents and explosives. The PSIAs are not required to be qualified as engineers. Also, ascertaining the age of a second hand machine is an engineering exercise and can be performed only by a qualified engineer. Thus, certifying the age of machines is beyond the jurisdiction of PSIAs.

4. After due consideration o........