MANU/CUCR/0001/2023

Ministry : Ministry of Finance

Department/Board : Central Board of Indirect Taxes and Customs

Circular No. : 01/2023-Customs

Date : 11.01.2023

To,

Pr. Chief Commissioners/Chief Commissioners (Customs or Central Tax & Customs)
Pr. Directors General/Directors General, all under CBIC
Pr. Commissioners/Commissioners of Customs
Pr. Additional Directors General/Additional Directors General, all under CBIC

Madam/Sir,

Information regarding Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023

1. The undersigned is directed to say that the second proviso to sub-section (1) of section 14 of the Customs Act lists out certain matters which may be provided for in the rules. The said sub-section was amended vide the Finance Act, 2022 to insert the following text under its second proviso-"(iv) the additional obligations of the importer in respect of any class of imported goods and the checks to be exercised, including the circumstances and manner of exercising thereof, as the Board may specify, where, the Board has reason to believe that the value of such goods may not be declared truthfully or accurately, having regard to the trend of declared value of such goods or any other relevant criteria:"

2. It may also be recalled that, as described in the explanatory memorandum with the Finance Bill 2022, the said amendment is a measure to address the issue of undervaluation in imports and it provides for rules to be framed by the Central Government whereby the Board can be enabled to specify the additional obligations of the importer in respect of a class of imported goods whose value is not being declared correctly, the criteria of selection of such goods, and the checks in respect of such goods.

3. After information to and feedback from public and stakeholders, including Directorates involved in implementation, the Notification No. 03/2023 dated 11th January 2023 has been issued notifying the Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023 (hereafter referred as CAVR, 2023).