Chartered Engineer Certificate for Used Machinery Import: Full Process Walkthrough
By Harihar S, Chartered Engineer & IBBI Registered Valuer
Why a Chartered Engineer certificate is required
India's Foreign Trade Policy (FTP) permits import of used capital goods, but customs does not accept the invoice value alone as proof of the declared CIF value. An independent Chartered Engineer certificate is required to certify the machine's residual life and fair market value in the country of origin, supporting the value declared for customs clearance. This is the same certification covered under Axium's used machinery valuation for customs service.
What the certificate states
- Description, make, model and year of the machine
- Residual life remaining in the machine
- Present market value in the country of origin
- Verified year of manufacture
- A reasonableness opinion on the declared CIF value
The process, step by step
Engage a Chartered Engineer
Appoint a Chartered Engineer empanelled for used machinery certification before the shipment is finalised.
Physical inspection
Carried out either pre-shipment at the seller's premises abroad, or post-arrival in India, depending on the shipment.
Residual life & valuation assessment
The engineer assesses condition, operating history and comparable market values to arrive at residual life and fair value.
Certificate issuance
A signed Chartered Engineer certificate is issued stating description, residual life, present market value and CIF value reasonableness.
Customs filing with Bill of Entry
The certificate is filed along with the Bill of Entry at the time of customs clearance.
Clearance
Customs assesses duty against the certified and declared value, and the consignment is cleared.
Who needs this certificate
- Manufacturers importing used production machinery
- Traders and dealers in used equipment
- Importers claiming EPCG export obligation benefits
- Importers facing a customs valuation query
Frequently asked questions
Is a Chartered Engineer certificate always mandatory for used machinery import?
Yes, for used capital goods imported under the Foreign Trade Policy. Customs requires independent certification of the machine's residual life and fair value to support the declared CIF value, since the policy permits used capital goods import but does not accept invoice value alone as proof of value.
Can the inspection happen after the machinery arrives in India?
Yes. Inspection can be carried out pre-shipment at the overseas seller's premises, or post-arrival at the Indian port or the importer's own facility, depending on what is practical for the shipment and what customs will accept for that consignment.
What happens if customs disputes the declared value?
If customs raises a valuation query, the Chartered Engineer certificate's residual life and fair value assessment becomes the primary independent evidence supporting the declared CIF value, and can be relied on to resolve the dispute without a prolonged assessment order.
Does Axium provide Chartered Engineer certificates for used machinery import?
Yes. Axium's partners, Chartered Engineers Harihar S (Registration F-125668) and Kamalakannan C (Registration M-1564255), issue used machinery import certificates covering residual life, present market value and CIF value reasonableness.
Partner with Axium for expert valuation services
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