Regarding the import then export

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Charitra (Querist)
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17 January 2014 i want to know that if i want to import-manufacture-export then what is the valuation method for it. all the companies are the related countries in world. and what documents are required for that.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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17 January 2014 valuation method means?

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Charitra

Charitra (Querist)
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17 January 2014 which value we should we take. under section 14 of customs act.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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17 January 2014 Transaction value is the price actually paid or payable for the goods when sold for export to the country of importation. It needs to be adjusted by valuation factors.

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The transaction value method can be applied if the following valuation conditions are met:

(i) There should be evidence of a sale for export to the importing country. Such evidence may be in the form of commercial invoices, sale contracts, purchase orders etc.

(ii) There should not be restrictions on the disposition or use of the goods by the buyer other than restrictions which:

a) are imposed or required by law or by public authorities in the importing country e.g. licence end-use etc.;

b) limit the geographic area in which the goods may be resold; or

c) do not substantially affect the value of the goods, e.g. restrictions on selling or exhibiting automobiles prior to a fixed date which represents the beginning of a model year.

(iii) The sale or price should not be subject to conditions or considerations for which a value cannot be determined in respect of the goods being valued. For example, transaction value will not be accepted if the seller fixes the price of the imported goods subject to the buyer buying other goods in specified quantities. Similarly, transaction value will not be acceptable if the price of imported goods is dependent upon, the price at which the buyer sells other goods to the seller: Transaction value is also to be discarded if the price is established in the form of payment extraneous to the imported goods, such as where the seller provides semi-finished goods subject to the condition that he/she will receive a specified quantity of finished goods.

(iv) No part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer should accrue directly or indirectly to the seller, unless an appropriate adjustment can be made. There should be sufficient information for making adjustment of such proceeds.

(v) The buyer and the seller should not be related. The transaction value can still be accepted if the relationship has no influence on the price paid or payable; or

b) the importer demonstrates that the transaction value closely approximates any of the test values (transaction value. deductive value or computed value of identical or similar goods) ascertained at or about the same time in respect of sale to unrelated buyers in the importing country.

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