Now we have export valuation rules under Customs Act 1962.You have to be careful now to declare your export price of the goods.If you over-invoiced the export cargo then also your violating law and you do the same if you declare low price .
Earlier there was rule that the domestic market value of the goods can be much lower than the selling price to the international market.But now there is sequence to follow for determining export value of the goods.Further, you have should have all documents to justify your price.
The sequences to follow to determine export value .First it is transactional value(rule 3),second by comparing price(rule4),third computed method(rule5) fourth Residual method by adopting principal of reasonableness.If the customs officer has doubt about export value,then he may reject the export price it self.[source:NOTIFICATION No. 95/2007-Customs (N.T.) ].
There is fine,penalty and adjudication process for export violation.At time department may launch prosecution against exporter as the case may be.
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