Amendments in Customs Valuation Rules for imports (Determination of value of imported goods)
No. CLE-HO/POLICY/CIRCULAR/2017
October 3, 2017
Members of the Council,
Dear Sir,
Sub : Amendments in Customs Valuation Rules for imports (Determination of value of imported goods)
The Central Board Excise & Customs has issued a Customs Circular No.39/2017-Customs dated 26th September 2017 and Customs Notification No.91/2017-Customs (NT) dated 26th Sept 2017 regarding amendment in Customs Valuation Rules for imported goods. The following are the highlights of the said circular/notification.
· By virtue of the amendment now carried out to the Customs Valuation Rules 2007, the loading, unloading and handling charges associated with the delivery of the imported goods at the place of importation, shall no longer be added to the CIF value of the goods, for Customs Valuation. Earlier, ad valorem duties based on value of goods and expressed as a percentage of assessable value included Cost + Insurance + Freight + 1% landing charges.
· Thus, only charges incurred for delivery of goods “to” the place of importation (such as the loading and handling charges incurred at the load port) shall now be includible in the transaction value.
· The value of the imported goods shall be the value of such goods, and shall include
(a) the cost of transport, loading, unloading and handling charges associated with the delivery of the imported goods to the place of importation;
(b) the cost of insurance to the place of importation:
Provided that where the cost referred to in clause (a) is not ascertainable, such cost shall be twenty per cent of the free on board value of the goods:
Provided further that where the free on board value of the goods is not ascertainable but the sum of free on board value of the goods and the cost referred to in clause (b) is ascertainable, the cost referred to in clause (a) shall be twenty per cent of such sum:
Provided also that where the cost referred to in clause (b) is not ascertainable, such cost shall be 1.125% of free on board value of the goods:
Provided also that where the free on board value of the goods is not ascertainable but the sum of free on board value of the goods and the cost referred to in clause (a) is ascertainable, the cost referred to in clause (b) shall be 1.125% of such sum:
Provided also that in the case of goods imported by air, where the cost referred to in clause (a) is ascertainable, such cost shall not exceed twenty per cent of free on board value of the goods:
Provided also that in the case of goods imported by sea or air and transshipped to another customs station in India, the cost of insurance, transport, loading, unloading, handling charges associated with such transshipment shall be excluded.
Members may kindly note the above.
Thanks and regards
R.Ramesh Kumar
Executive Director