Chartered Engineer and Valuer Services

INDIAN CUSTOMS

Valuation of second-machinery and fixation of Scale of depreciation.

Circular No. : 493/124/86-Cus, VI Dated : 19/11/1987

Form B - Chartered Engineer Certificate

(Refer Para 6 (d) of Circular No. 07/2020-Customs dated 05th February 2020)

The scale or depreciation should be calculated on the basis of the price of the new machinery in the year of manufacture as declared.

Scale of depreciation (Refer table on the right)

depreciation may be allowed for arriving at the assessable value of second-hand machinery on the following scale, Subject to an overall limit of 70%.

Valuation of second hand machinery
Circular No. 07/2020-Customs dated 05th February, 2020

India Potteries Ltd. Vs. Commr. of Customs (Port), Kolkata

Appeal No. C/233/2011 Final order No.77142/2023

Issue:-The appellant imported second hand machinery from Germany. They filed the Bill of entry No. 168061 dated 11/11/2010 enclosing therewith commercial invoice raised by the foreign supplier showing the value of the second hand machinery as Euro 15506. After scrutiny the department enhanced the value to Euro 28280.

Held:- In case of second hand machinery the maximum allowable limit of depreciation is 70%. The adjudicating authority has followed the circular and arrived at the enhanced value to Euro 28280.

Restricted Used Machinery / Capital Goods (as notified by DGFT)

Section 2.31 of the Foreign Trade Policy (Authorization required for import)

Personal computers (PCs)/ laptops including their reconditioned/refurbished spares
Photocopier machines/ Digital Multifunction Print & Copying Machines
Air conditioners (ACs)
Diesel generating (DG) sets.
Re-conditioned/Refurbished spares of Capital Goods.
(for less than 80% residual life)*
*If residual life of spare parts of Capital Goods more than or equal to 80% of total useful life, no restrictions are there.
Chartered Engineer Certificate is required to verify this claim.
Second-Hand Goods other than capital goods are also restricted.

Anti Dumping Duty (ADD-Customs)

Notification No. 21/2025-Customs (ADD) dated 26.06.2025 - Plastic Processing Machines from China PR (63% ADD) & Taiwan (53% ADD) - Injection Molding Machines (New)

Customs Valuation

We provide expert customs valuation services ensuring compliance and accuracy for importers and exporters, helping navigate complex regulations smoothly.

Duty-Free Import of Machinery : EPCG Scheme by DGFT

Under this scheme, importers can bring in capital goods at zero customs duty, provided they fulfil an export obligation equivalent to six times the duty saved within a period of six years from the date of issuance of the EPCG authorization.

MOOWR scheme

(Manufacture and Other Operations in Warehouse Regulations, 2019

Importation of second hand capital goods is permitted under the MOOWR regime subject to compliance with import policy and customs obligations. Where items are restricted under the Foreign Trade Policy, a DGFT import licence is required. Valuation requires transparent documentation and may need a Chartered Engineer's Certificate; absent a transaction value, Rule 9 of the Customs Valuation Rules governs valuation. Goods remain non duty paid in bonded premises until cleared for home consumption; duties are payable on clearance, while goods used in manufacturing for export attract no import duty. Environmental and safety rules including WEEE compliance must also be met