Value mentioned in ARE-1 and Customs invoice

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Ramesh (Querist)
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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)
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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.

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Ramesh

Ramesh (Querist)
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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.