Rules 5 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rules 5 to 10 describe the whole route from a complaint about undervalued imports to a Board Order. A written reference is made, the Screening Committee examines it quickly, the Evaluation Committee studies it in detail, the Screening Committee confirms the report, and the Board may issue an Order specifying the goods as identified goods. Our compliance advisory team can help you follow this route for your own product class.
The Rules stand as made by Notification No. 03/2023-Customs (N.T.) dated 11 January 2023; as amended up to 3 October 2026, no amending notification was found in CBIC's 2023 to 2026 lists (CBIC text dated 11 January 2023). Later notifications should be checked; no official consolidated text exists beyond the CBIC text.
The Board may specify goods as identified goods by an Order where, from the trend of declared values or other criteria, it has reason to believe they may be declared below their truthful value. The Screening Committee must finish its preliminary examination preferably within fifteen days, no later than twenty-one days; the Evaluation Committee reports in not more than thirty days; the Screening Committee recommends to the Board within fifteen days; and an Order lasts not below one year and not exceeding two years in the first instance.
Rule 5: specification by the Board
Under rule 5, for the purposes of clause (iv) of the second proviso to section 14(1) of the Act, where the Board, having regard to the trend of declared value or other relevant criteria, has reason to believe that goods of a class or subset may not be declared at their truthful or accurate value but below it, it may, by an Order, specify them as identified goods "in accordance with rule 10". See our article on section 14.
Rule 6: sources for examining cases
Who may make a reference
Rule 6(1): the Board relies on a written reference made electronically by any person with reason to believe that the value of a class of goods or subset may not be declared truthfully. A Commissioner, Additional Director General or a person representing another Government Department may also refer.
What the reference must carry (rule 6(2))
| Clause | Content |
|---|---|
| (a) | Name, full address, mobile number, email and contact details, with proof of identity and address (not needed from a Government Department) |
| (b) | Complete description and the 8-digit HS Code, with technical literature, specifications, composition, quality, brand, model, country of origin or ports of despatch where appropriate |
| (c) | The manner or method by which value is declared below the truthful value |
| (d) | Information with documentary evidence, data and analysis supporting the claim |
| (e) | An approximate quantification of the undervaluation |
| (f) | Other reliable sources of information, if any |
| (g) | Suggestions, if any, for additional obligations and checks |
Under rule 6(3), the Board forwards the reference electronically to the Screening Committee.
Rule 7: preliminary examination
The Screening Committee examines the reference to decide whether it, or part of it, should go for detailed examination, scrutinising the content and the relevant trends of declared values. Its findings are signed by each member and completed preferably within fifteen days, but no later than twenty-one days from the date the Board forwards the reference (rule 7(3)).
- If suitable, the reference is deemed taken up for detailed examination on the date the preliminary findings were recorded (7(4)).
- If not, the Committee records reasons and closes it (7(5)).
Rule 8: detailed examination
The inquiry
The Evaluation Committee assesses, on a preponderance of probabilities, the likelihood that the value of the class may not be declared truthfully. It may do data analysis and take into account: trends in international prices; stakeholder consultation; expert reports and published or open-source material, including overseas verification reports; disclosures under the Act or other law; costing; further information from the person who made the reference; and other reliable information (8(1)(a) to (g)).
The report
The reasoned report is signed by each member and recorded in not more than thirty days of the detailed examination being taken up. The Convenor of the Screening Committee may extend this for recorded reasons by a further period of not more than thirty days (proviso to 8(2)). If the report does not find the likelihood, the Evaluation Committee records closure and the report goes to the Screening Committee for filing (8(3)).
What a positive report must specify (rule 8(4))
- Description of the class with 8-digit HS Code.
- Brands noticed in connection with the likelihood.
- The precautionary unit value, expressed in the terms of items 4 and 5, which the Customs Automated System may use to require additional obligations where the declared value is lower. The Rules print no number; it is set case by case.
- The Unique Quantity Code the importer must use to declare the value in the bill of entry.
- Specifications relevant to value, such as make, model, brand, grade, size, quality, composition and quantity.
- Other additional obligations of the importer; the Explanation says these may include the manufacturer invoice, manufacturer test report, expert certification from the country of origin, manufacturing process, costing, and purchase order or contract.
- The checks to be exercised.
- The duration, not below one year and not exceeding two years in the first instance.
Rule 8(5): the report includes the nature of imports to which the Rules may not be applied under clause (j) of rule 13. Rule 8(6): the report's aspects must be implementable on the Customs Automated System.
Rule 9: confirmation and recommendation
The Evaluation Committee's detailed report passes to the Screening Committee, which confirms it is complete and rectifies deficiencies, then recommends to the Board within fifteen days of the report.
Rule 10: the Board's decision
If satisfied, the Board may issue an Order under rule 5 specifying: the description with 8-digit HS Code; the Unique Quantity Code; technical or other specifications; other importer obligations, if any; checks; and the duration, not below one year and not exceeding two years in the first instance (10(1)). The Board also considers review reports and changes Orders accordingly (10(2)).
| Stage | Who | Time as printed |
|---|---|---|
| Reference | Any person, officer or Government Department; Board forwards to Screening Committee | None printed |
| Preliminary examination | Screening Committee | Preferably 15 days, no later than 21 days |
| Detailed report | Evaluation Committee | Not more than 30 days; extension up to a further 30 days |
| Recommendation | Screening Committee | Within 15 days of the report |
| Order | Board | None printed; valid 1 to 2 years initially |
For example, a reference on imported polyester yarn reaches the Screening Committee. After a preliminary finding, the Evaluation Committee examines international price trends and costing and reports a precautionary unit value, a Unique Quantity Code and extra documents. The Board, if satisfied, issues an Order for the stated period. Importers then follow rule 11, covered in our article on rules 11 to 15. The committees are described in our article on rules 1 to 4. The ordinary valuation tests are in our article on rule 3.
Importers should check early whether their goods sit in a class that may be referred.
Need help with an identified-goods Order?
If your product has been specified or you want to assess your exposure, we can map the Order to your bill of entry data and documents. Speak to our compliance advisory team.
Key takeaways
- The Board specifies identified goods by Order under rule 5 and rule 10.
- A written reference, made electronically, starts the process.
- Preliminary examination: preferably 15 days, no later than 21 days.
- Detailed report: not more than 30 days, extendable by up to 30 more.
- The first Order runs for at least one year and at most two years.
Read next
- Rules 1 to 4 of the Assistance in Value Declaration Rules
- Rules 11 to 15: importer obligations, review and exceptions
- Rule 3 of the import valuation rules
- Section 14 of the Customs Act, 1962
Disclaimer: Based on the customs rules named above as published on the CBIC Tax Information Portal and, for sets amended since 2023, the amending notifications (read through a TaxClue consolidated reading text; no official consolidated text exists), as consulted on 3 October 2026. Later notifications, rates and the Customs Act, 1962 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.