The Hindu Business Line : Govt issues draft exim valuation rules

New Delhi March 30 The Finance Ministry has come up with draft export valuation rules to ensure there is no misuse of the existing duty entitlement passbook (DEPB) or drawback schemes and also curtail money laundering through merchandise export activities.

The export valuation rules are intended to provide some deterrent effect, a Finance Ministry official said.

This move has resulted from the Budget 2007-08 announcement that transaction value would be the basis for valuation of export and imported goods and not the `deemed value'.

The transaction value would be determined in accordance with the rules made in this regard, the Government had said at the time of the Budget.

Hitherto, the country did not have any specific export valuation rules under customs legislation. The country's merchandise exports are estimated at $125 billion during 2006-07.

The Finance Ministry has also announced draft import valuation rules in the wake of the decision to adopt `transaction value' for valuation of imported goods.

Budget 2007-08 had said that transaction value of imported goods would include any amount that the buyer was liable to pay for costs and services, including commissions and brokerages, assists, engineering, design work, royalties and licence fees, costs of transportation to the place of importation, insurance and handling charges.

In cases where there was no sale or the transaction value of the imported goods or the export goods was not determinable, the Government had said that the value of such goods would be determined in accordance with the rules made in this regard.

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