. /.   WORLD TRADE  
ORGANIZATION  G/VAL/W/173 
29 October 2008 
 (08-5240) 
Committee on Customs Valuation Original:   English 
  
 
QUESTIONS TO THE DELEGATION S OF INDIA AND INDONESIA 
(DOCUMENT G/VAL/W/167) 
 
India's Replies to the Questions from the United States
 
 
Communication from India 
 
 
 The following communication, dated 23 October 2008, is being circulated at the request of the delegation of India.  
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The primary concern of the United States appear s to be regarding non receipt of documentation 
such as Show Cause Notice by the importer, thereby effectively precluding filing of appeal. This is 
not correct. Any importer, who is aggrieved by the assessment order, can file an appeal against the 
assessment order even if no Show Cause Notice and speaking order is issued. 
 Under the Customs Act, 1962 the importer and his agent can file an appeal against a decision on 
valuation matter to the Commissioner (Appeals) in th e first instance.  A second appeal also lies to the 
Customs, Excise and Service Tax Appellate Tri bunal. Section 18 of the Customs Act, 1962 and 
Customs (Provisional Duty Assessment) Regulati ons, 1963 provide for provisional assessment and 
release of the goods after provisional assessment, if  the importer or exporter, as the case may be, 
furnishes such security as the proper officer deems fit for the payment of the deficiency, if any, 
between the duty finally assessed a nd the duty provisi onally assessed.  
 
The replies to the specific questions raised are as under: 
 
1. Could India please explain how companies are informed of actions taken by Indian 
Customs with regard to them or their shipments? 
Reply:  In case of any query or objection relating to va lue, the same is informed in writing to the 
importer or the Custom House Agent, employed by the importer, to clear their goods.   
  
2. Could India confirm that an appeal cannot be made until documentation is received? 
Reply:  As per the Sections 128 and 129 of the Custom s Act, 1962 any person aggrieved by the order 
of assessment pertaining to valuation issues may ap proach the appellate authority viz. Commissioner 
of Customs (Appeals) or the Customs, Excise and Service Tax Appellate Tribunal, as the case may be, 
on the strength of the following documents: 
      a)  Order of Assessment passed by the proper officer. b)  Order in Original passed by an officer up to the rank of Additional Commissioner of 
Customs / Commissioner of Customs  G/VAL/W/173 
Page 2  
 
  It is clarified that a Show Cause Notice is issued to the importer as part of adjudication proceedings 
and it is not the document for filing appeal. The importer can file an appeal on the basis of an assessed copy of the Bill of Entry (Order of Assessme nt) itself without waiting further for the Order-in-
Original as at (b) above.   3. If documentation is required before an appeal  can be lodged, are there guidelines as to 
when such documentation must be provided. 
Reply:  As per Sec 17(5) of the Customs Act, 1962, wh ere any assessment done is contrary to the 
claim of the importer regarding valuation of goods  and in cases other than those where the importer 
confirms his acceptance of the said assessment in writing, the proper officer shall pass a speaking 
order within 15 days from the date of assessment of the Bill of Entry. 
    
4. If a company requests documentation and does not receive it, are there avenues which 
the company can pursue to obtain such documentation? 
 Reply:  The order is required to be served to the aff ected party and the date of filing appeal is  
counted from the date of its receipt by the party. Therefore, there should not be any requirement for 
the party to pursue obtaining of the order.   
5. Could India confirm that an importer has the ri ght, not just the ability, to withdraw its 
goods by providing a guarantee as required by Article 13 of the CVA? If so, where is that stated in the law? 
 Reply: Section 18 (1) of the Customs Act, 1962, deals with the provisions of provisional assessment 
and release of the goods after provisional assessment, if the importer or exporter, as the case may be, 
furnishes such security as the proper officer deems fit for the payment of the deficiency, if any, 
between the duty finally assessed and the duty pr ovisionally assessed. The importer does not have 
right to withdraw his goods by providing a guara ntee. However, the importer can get the goods 
released on payment of duty under protest to maintain his right to claim refund, if any.    
  
6. Does India have any additional laws, regulations  or directives pertaining to guarantees?  
Please provide references for the addition al laws, regulations, and directives.  
Reply: The quantum of bond and security is fixed as per the provisions of the Customs (Provisional 
Duty Assessment) Regulations, 1963 (Notification No . 181-Cus., dated 13.07.196 3. Paragraphs 2, 3 
and 4 of the said Regulations deal with the ex ecution of bond along with surety or security.  
  
7. Furthermore, could you please provide additional information regarding how the 
guarantee amount is determined and what pr ocedures importers must follow in order to 
withdraw goods from customs pending final determination of value? 
  
Reply:  The quantum of bond and surety or security de pends on the differential duty between the duty 
finally assessed and the duty provisionally assessed. The importer does not have the right to demand provisional assessment. The proper officer, pe nding production of any document/information 
necessary for assessment, may direct that the duty lia ble on the goods be assessed provisionally if the 
importer furnishes security.  
 
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