CBIC -Customs Automated System

January 13, 2023

The Central Board of Indirect Taxes and Customs (CBIC) has announced that it will come out with a list of “identified goods” that will be subject to stricter scrutiny for their true value. The CBIC has notified the Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023, aimed at addressing the undervaluation of specified imported goods. The rules will be effective from February 11, 2023, according to a notification issued by the CBIC.

Committee Formation

As per the rules, two committees will be constituted – a screening committee for a preliminary examination of “identified goods” and an evaluation committee for a detailed examination. Importers of the identified goods will be required to declare the value of goods using the Unique Quantity Code. Under the Customs Automated System, importers will also be required to fulfill additional obligations, and the assessment of goods will be subjected to additional checks.

Violation Consequences

In the case of violation, further proceedings will be initiated under the Customs Valuation Rules 2007. The budget proposed to amend section 14 of the Customs Act by imposing additional obligations on importers in respect of a certain class of imported goods where the Board believes that importers are evading duty by not declaring the true value, causing a loss to the exchequer.

The identified goods

The specified goods will be a list of items selected by the Board where it has reason to believe that the value of such goods may not be declared truthfully or accurately. The list of such goods will be prepared and recommended by the screening committee and the evaluation committee.

In conclusion, the CBIC’s implementation of stricter scrutiny of imported goods through the formation of committees and additional obligations for importers is aimed at addressing undervaluation and protecting the exchequer’s interests. The list of identified goods and the roll-out of these rules will be closely monitored in the coming months.

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