Valuation of Second Hand Machinery

Local CE Certificates Attested by Docks Appraiser Must

The following Public Notice was issued by the Commissioner of Customs (Import) Jawaharlal Nehru Customs House on 7th October 2010.

Attention is invited to Board’s Circular No. 4/2008-Cus dated 12.02.2008 regarding the valuation of the imported second hand (old and used) machinery.  Attention is also invited to Public Notice No. 84/2008 and 9/2009 issued by JNCH prescribing the procedure for submission of local Chartered Engineer Certificate in the absence of certificate issued in the country of supply.  The said Public Notice also mentions the names of approved local Chartered Engineer/Inspection and Certifying Agencies.  It has also been prescribed in para 4 of Public Notice 84/2008 that the Chartered Engineer Certificate and other relevant documents including NIDB data indicating the value of similar goods shall be examined by the Assessing Officers for acceptance of declared value or re-determination of value in terms of CVR,2007.

2.   Recently, it has been noticed that inspection of the second hand machinery by the local Chartered Engineers is not being conducted in the appropriate manner.  It is therefore, decided to standardize the procedure of inspection, which is as follows:

(i)    Importer should appoint a local Chartered Engineer (CE)/Inspection and Certifying Agency as per the Public Notice No. 84/2008 and 9/2009 and should intimate the AC/DC (Import Docks) of the concerned CFS.

(ii)   Thereafter, the local CE should seek and appointment from the concerned AC/DC for inspection.

(iii)  On receiving such request, the concerned AC/DC will allocate an Appraising Officer/Supdt. who will supervise the entire inspection process conducted by the local CE.

(iv)  Report generated by the local CE, should be counter singed by the concerned Docks Appraising Officer/Supdt. who had supervised the inspection process.

3.   It may be noted that all assessing groups will only accept those local Chartered Engineer’s Certificates which have been attested by the Docks Appraiser or Superintendent, as the case may be.

4.   Above procedure should be strictly followed by all importers.  Any difficulty in implementation of this Public Notice may be brought to notice of the undersigned.