A Reference Library for Customs, Excise, Goods & Services Tax Officers and Tax Payers

Directorate General of Valuation (DOV)

DG Valuation

The Directorate of Valuation (DOV) was established in the year 1997. It was upgraded to a Directorate General in December, 2002. With greater convergence of duty rates to a mean rate, undervaluation remains the keep modus operandi by unscrupulous elements to evade leviable duties. The directorate of valuation is uniquely placed to collate and disseminate valuation data on internationally traded commodities and detect and prevent valuation frauds. Functions assigned to the Directorate General of Valuation are as under:

(a) To assist and advise the Board in the implementation and monitoring of the working u1 the WTO Agreement on Customs Valuation;

(b) To build a comprehensive valuation database for internationally traded goods using past precedents, published price information or prices obtained from other authentic sources;

(c) To disseminate the price information on a continuing basis to all customs formations for online viewing and as a means of assistance for day-to-day assessments with a view to detecting and preventing under valuation as also for enabling assessments to be finalized speedily;

(d) To monitor valuation practices/at various customs, formations and bring to the notice of the Board the significant .and emerging pricing patterns and to suggest corrective policy initiatives;

(e) To maintain liaison with the Valuation Directorates of other customs administrations and customs officers posted abroad;

(f) To study international price trends of sensitive commodities and pricing patterns of trans-national corporations (e.g. transfer pricing) and Indian ventures with foreign collaborations and help evolve a system to combat planned under-valuation as well as valuation frauds;

(g) To carry out inspection of the field formations to determine whether the valuation norms as evolved by the Directorate of Valuation are uniformly applied across the country;

(h) Developing Central Excise Valuation Database; and

(i) Providing data for valuation corridor under RMS.

Performance of DG Valuation

Directorate General of Valuation presently has three Zonal Units located at Delhi, Chennai and Kolkata and headquarters at Mumbai. During last three years, due to proper valuation of the goods, huge amounts of revenue could be realized. This Directorate has developed following database/projects:

(i) National Import Database;

(ii) Export Commodity Database;

(iii) Central Registry Database;

(iv) Central Excise Valuation Database;

(v) Valuation Alerts;

(vi) Identification of Sensitive Commodities;

(vii) Valuation Inspections; and 

(viii) Valuation Risk Component of RMS.

Comparative performance for last few years:

(a) Extra duty realized on account of enhancement in valuation:

Sl. No. Financial Year Amount Realized
(Rs. in crores)
% increase / decrease over last year
1 2006-07 627 + 38%
2 2007-08 735 + 17.22%
3 2008-09 727 - 1.09%
DG_Valuation

(b) Valuation Inspections carried out b Directorate General of Valuation:

Sl. No. Financial Year No. of Inspections Customs stations inspected
1 2006-07 7 Nhava Sheva, Delhi Customs, ACC, Sahar & Tuticorin Customs, ACC Hyderabad, ICD Hyderabad
2 2007-08 12 JNCH, Nhava Sheva, ACC Sahar, Mumbai Cus. House, ACC Delhi, Kolkata Cus. House, ICD Tuglakabad, ICD PPGm, Ghari Hasru, Rewari, NOIDA (Dadri), Chennai Cus. House, Chennai ACC
3 2008-09 15 Mumbai ACC, Mumbai Airport, Goa Customs, ICD Ballabhgarh/Faridabad, ICD Loni (Ghaziabad), Kandla, Ahmedabad (Prev.), Cochin Customs, ICD Rewari, ICD Garhe Harsaru, ACC New Delhi & ACC Bangalore, Petrapole Land Customs, Paradip Custom House, Raxaul Land Customs.
DG_Valuation

(c) Valuation Alerts issued by Directorate General of Valuation:

Sl. No. Calendar Year No. of Alerts / Guidelines
1 2007 04
2 2008 06
3 2009 05
DG_Valuation

Based on cadre review proposals 2010.



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