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    Valuation For Customs Duty

    Uploaded by

    Chiranjeevi Revalpalli R
    This document discusses valuation methods for determining customs duty in India. There are two primary valuation methods: 1) the value defined under Section 14(1) of the Customs Act, which is normally used and called the assessable value or customs value, 2) a tariff value defined by the Central Board of Excise and Customs. The customs value includes elements like commissions, packing costs, goods/services provided by the buyer, royalties, transportation costs, and insurance charges. Certain costs are excluded, like installation charges and bank fees. Customs duty is calculated as a percentage of the value determined under one of these two valuation methods.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Valuation For Customs Duty

    Uploaded by

    Chiranjeevi Revalpalli R
    100 views7 pages
    This document discusses valuation methods for determining customs duty in India. There are two primary valuation methods: 1) the value defined under Section 14(1) of the Customs Act, which is normally used and called the assessable value or customs value, 2) a tariff value defined by the Central Board of Excise and Customs. The customs value includes elements like commissions, packing costs, goods/services provided by the buyer, royalties, transportation costs, and insurance charges. Certain costs are excluded, like installation charges and bank fees. Customs duty is calculated as a percentage of the value determined under one of these two valuation methods.

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    Valuation for Customs Duty.pptx

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    This document discusses valuation methods for determining customs duty in India. There are two primary valuation methods: 1) the value defined under Section 14(1) of the Customs Act, which is normally used and called the assessable value or customs value, 2) a tariff value defined by the Central Board of Excise and Customs. The customs value includes elements like commissions, packing costs, goods/services provided by the buyer, royalties, transportation costs, and insurance charges. Certain costs are excluded, like installation charges and bank fees. Customs duty is calculated as a percentage of the value determined under one of these two valuation methods.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    100 views7 pages

    Valuation For Customs Duty

    Uploaded by

    Chiranjeevi Revalpalli R
    This document discusses valuation methods for determining customs duty in India. There are two primary valuation methods: 1) the value defined under Section 14(1) of the Customs Act, which is normally used and called the assessable value or customs value, 2) a tariff value defined by the Central Board of Excise and Customs. The customs value includes elements like commissions, packing costs, goods/services provided by the buyer, royalties, transportation costs, and insurance charges. Certain costs are excluded, like installation charges and bank fees. Customs duty is calculated as a percentage of the value determined under one of these two valuation methods.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    Valuation for Customs Duty

    Customs duty is payable as a % of value


    Often called as Assessable value (AV) or
    Customs Value (CV).
    This value may be
    Value defined u/s 14(1) of Customs Act
    Tariff Value defined u/s 14(2) of Customs
    Act

    Tariff Value:- CBEC may fix value


    of any class of imported goods. Duty
    is payable as a % of this value (not
    practiced often)
    Customs Value 14(1):- Fixed as per
    Sec 14 (1) or this value is normally
    used for calculation of CD. It is often
    called as AV or CV.

    Value for the purpose of


    customs duty
    Price

    at which such goods or similar goods are


    ordinarily sold.
    Price should be in the course of international trade.
    Price should be the sole consideration.
    Rate of exchange as on the date of presentation of
    bill of entry as fixed by CBEC by notification should
    be considered.
    Seller and buyer have interest in each other
    business.
    Custom value shall always be a Deemed Value
    finded as per sec 14(1).

    CUSTOM VALUE INCLUDES


    Commission

    and brokerage paid to local agents


    and agents of
    exporter except buying
    commission.(agent of importer).
    Packing cost is to be included except cost of
    durable and reusable containers.
    Value of goods supplied by buyer.
    Value of engineering, development, art work,
    design work and plans, sketches undertaken by
    buyer which is necessary for production of
    imported goods is taxable only if it is done outside
    India.

    Royalties

    and license fee if paid separately.


    Value of subsequent re sale if payable to foreign
    supplier, its cost is included in the customs value
    Any other payment made by buyer to seller as a
    condition of sale.
    Cost of transportation from exporting country to
    Indian port should be included .i.e.(CIF value
    shall be considered)
    Cost of unloading and handling associated with
    delivery is taxable
    If goods are imported by air,maximum of 20% of FOB
    value shall be considered.
    Cost of transportation within India not to be
    considered.

    Insurance

    charges: Actual or if not


    ascertainable, 1.125%of FOB value.

    Landing

    charges : Unloading and


    landing charges 1% of CIF value or
    actual landing charges.

    CIF

    value
    +insurance.

    =FOB

    price+freight

    Items to be excluded from


    Assessable Value
    Charges

    of errection, testing,
    assembly etc. are excluded from
    AV

    Bank

    charges paid for the


    services rendered by the banker
    should not be included

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