Stirring the Pot: Year-End Changes in the Central Excise Valuation Rules

Abstract

The Rules have been blind-sided and will cut across the board. While getting at vitiated sales to related persons is a legitimate objective, the new Rules may unwittingly add to margin pressures for the affected manufacturers. It was really believed since July 2000 that the introduction of transaction value in the Central Excise Valuation System put paid to long-running uncertainties in determining the central excise assessable value of excisable goods.