Value mentioned in ARE-1 and Customs invoice

Save Share

This query is : Resolved

Ramesh (Querist)
Follow

17 February 2011 hi,

I understand that ARE-1 is a document used to remove a excisable/dutiable shipment from the factory premises, however is it mandatory that the value mentioned in the ARE-1 should match the invoice value that is submitted to the customs at the time of Exports?

For Eg: the product value mentioned in the ARE-1 is Rs.5000/-, but the exporter has given the commercial invoice value for Rs.25000/-. would this be acceptable to the customs?

Ambadas

Ambadas (Expert)
Follow

21 February 2011 Normally, value in Rupees is not mentioned on Commercial Invoice. It is in foreign currency. Value mentioned on ARE-1 is in Rupees which is taken from excise invoice prepared for removal of goods. This rupee value is arrived by applying Custom declared monthly exchange rate.

Message likes : 1 times

Ramesh

Ramesh (Querist)
Follow

21 February 2011 thanks, the example given was for illustration purpose only. IN the case that i have mentioned above, the ARE-1 mentions a value of INR 5000/-, but the invoice mentions a value of USD 500.

Would this difference in the ARE-1 value and customs invoice value be accepted by customs? If yes or no, please provide me with the relevant act/ notification by the customs/ central excise.