Valuation of Customs Duties

• Ajay Babu BandiPractising Chartered Accountant

M.Com, FCMA,ACA,IFRS(Certified)

The value of Imported and Export Goods shall be the Transaction Value of such Goods

Transaction Value u/s 14(1)Price actually paid or payable for the goodsWhen sold or export to/from IndiaFor delivery at the time & place of

importation /exportationWhere the Buyer and Seller of the goods are

not related andPrice is the sole consideration for the saleSubject to other conditions specified in the

Rules

The Customs Valuation (Determination of Value of Imported) Rules, 2007 is relevant in this regard

Exchange RateMeans rate of exchange.. The rate of

exchange –(i) determined by CBEC, or(ii) ascertained in the manner as CBEC

may directNote : Exchange Rates are determined and

announced by CBEC during the last week of the previous month

This Exchange Rate is applicable for all Bill of Entry filed in the next month

Exchange Rate

Relevant Date for Exchange RateThe price shall be calculated based

on the exchange rate on the relevant date—

For Imports

Relevant Date is date of presenting Bill of Entry u/s 46

For Exports

Relevant Date is date of presenting Shipping Bill or Bill of Export u/s 50

Tariff Value u/s 14(2)If the CBEC is satisfied that it is necessary

or expedient to do so, it may fix Tariff Values for any class of Imported Goods or Export Goods, having regard to the trend of value of such goods or like goods

Where such Tariff Values are fixed, the duty shall be chargeable with reference to such Tariff value

Relevant Date for Rate and Value

For Imported Goods Sec.15

For Exported Goods Sec.16

Customs Procedures - ImportLanding of GoodsDelivery of Import Manifest / ReportGrant of Entry Inwards to the Master

of vessel /permission to unload the goods

Unloading of goodsUnloaded goods to be in the custody

of the custodian until their clearanceFiling of Entry for Import, i.e., Bill of

Entry

Customs Procedures - ImportTiming of Entry of Bill of EntryAssessment of DutyPayment of DutyClearance of Imported Goods from

Custom Station :Clearance for Home ConsumptionWare housing

Transit of GoodsTranshipment

Customs Procedures - ExportFiling of Shipping Bill/ Bill of

Export“Let Export” OrderGrant of Entry OutwardsLoading of Goods on conveyance

for exportationDelivery of Export Manifest/ ReportNo conveyance to leave without

written order