Government Issues New Customs Rules to Tackle Undervaluation of Imported Goods

The Government of India has released the Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023, as per which the importers would have to declare the value of identified goods using the Unique Quantity Code while filing the bill of entry and provide additional information when required (by the Customs Automated System). These rules will come into effect w.e.f. February 11, 2023. 

As per the rules, identified goods are imported goods that are specified by the Central Board of Indirect Taxes and Customs (CBIC) when the board has reason to believe that the goods are undervalued and are not declared at their “truthful or accurate value”. Further, a screening committee and an evaluation committee would be set up.

When a complaint or reference in writing is received disclosing the undervaluation of goods by importers, then the board will send it across to the screening committee. After review of the same, if the screening committee assesses that further examination is required, then the matter will be taken up by the evaluation committee, which will furnish a report upon due examination. The screening committee is then required to confirm this report and make appropriate recommendations before the board which will take the recommendations into consideration before issuing an order specifying the goods as identified goods.

The importers must comply with the board’s orders and accordingly, declare the value of the goods using the Unique Quantity Code as per the order while filing the bill of entry.