Page 139 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes Export General Manifest

As per the Customs Act 1962, it is mandatory for all the shipping lines/agents to submit the Export
General Manifest according to the shipping bill, to the Customs Department, electronically. Such
manifest must be submitted within 7 days from the date of sailing of the vessel.
In addition to lodging the Export General Manifests in the electronic form, the shipping lines are
also required to file manual EGMs along with the exporter’s copy of the shipping bills in the
export department. It is to be noted that such manual EGMs have to be entered in the register at
the Export Department and the shipping lines are supposed to get the acknowledgements
mentioning the date and time of receipt of the EGMs by the customs department.
The procedure mentioned above is the general procedure for export goods customs clearance
under EDI Systems. However, the exporter is required to follow special procedures that are
applicable in case of specified export promotions schemes. The details and applied procedure
for such export promotion schemes are notified and issued by the respective Commissionarates
through the Public Notice/Standing Orders issued.

6.3 Custom Valuation

India is presently following the provisions of the WTO Agreement on Customs Valuation
(ACV) for determination of value on imported goods where Customs duty is levied with reference
to value (ad-valorem rates). However, this does not apply to cases where tariff values have been
fixed.
India is a founding Member of the GATT (presently WTO) and was actively involved in the
GATT negotiations (Tokyo Round, 1973-79), which developed the Agreement on Customs
Valuation (ACV). India implemented the ACV in August 1988.

6.3.1 Methods of Valuation

The Customs Valuation Rules, 1988, lays down six methods for the valuation of imported goods.
The primary basis for valuation is the “Transaction Value”. However, it is subject to adjustment
by certain Valuation Factors (see Rule 9). There are also certain conditions for the transaction
value method to be applicable (see sub-rule 2 of Rule 4). In certain situations, the Customs
authorities could reject the declared value (transaction value method), if the truth or accuracy of
the declaration is reasonably suspected (see Rule 10 A). In all such cases where the transaction
value method is not applied, goods shall be valued by applying the subsequent methods in a
strictly hierarchical order (see Rule 3).
In order to enable the Customs to determine the value by application of the most appropriate
method, the importer is required to truthfully declare the full particulars concerning the goods
under import. These include full description and specifications of the goods, basis of valuation
applied, relationship with the supplier, conditions and restrictions if any attached with the sale,
elements of cost not included in the invoice price, royalty and license fee payable in relation to the
imported goods, etc. These details are to be declared in a special Valuation Declaration Format
designed for the purpose. This is in addition to the entry declaration (Bill of Entry). In respect of
EDI processing, the valuation declaration is integrated as a part of the Electronic Declaration. The
importer should also provide copies of invoice, purchase contract and other supporting documents.

Transaction Value Method

Rule 3(i) of the Customs Valuation Rules, 1988 states that the value of imported goods shall be
the transaction value. Rule 4(i) thereof defines “transaction value” as the price actually paid or

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