Subject : Revised guidelines for determination /verification of the Present Market Value (PMV) under DEPB Scheme- Regarding.

    Attention is invited to Circular No 69/97- Cus. dated 08.12.97, as amended by Circular No. 79/98 Cus. dated 22.10.98.

2. A reference has been received from filed formations that under the provisions of the Customs Act, 1962, a period of 5 years has been provided for issue of Show Cause Notices in cases involving fraud/collusion/wilful mis-statement or suppression of facts. The Circular No. 69/97-Cus. dated 8.12.97 issued by the Board does not purport to restrict the statutory provisions of the Customs Act, wherever they may be applicable . However in order to remove doubts or ambiguity, if any, in Para Nos. 6 & 7 of the Circular No. 69/97-Cus. (as amended by Circular No 79/98 dated 22.10.98), it is being further amended to include the following provisions in paras 6/7.

3. Where Commissioner of Customs is satisfied that the inquiry for determining the Present Market Value of the goods, has to be extended for the reasons involving fraud/collusion/wilful mis-statement, or suppression of facts, which shall be recorded by him in Writing, he may extend the period of three months till such further period as is deemed necessary. In such cases, para 7 of Circular No. 69/67-Cus. was never intended to be applicable. In such cases the consignment should be allowed provisional clearance and the shipping bills should also be assessed provisionally.

Such shipping bills will not be entitled to DEPB scrip till the market inquiry is completed, and provisionally assessed shipping bills are finalised. Where the Present Market Value declared by the exporter is not accepted, a show Cause Notice shall be issued to the exporter as to why the PMV declared by him should not be rejected / revised.

4. In regard to consignments exported earlier, even prior to the issue of this clarification, if the Commissioner is satisfied that the above-mentioned circumstances exist, which necessitate an enquiry into PMV of the goods in any particular case, the Commissioner may cause enquiries and proceed to have the credit modified by DGFT or to deny the benefit of duty free import against such DEPB scrip till it is amended.