Customs duty is applied for cif or commodity value

Dear sir,

Customs are leviable on CIF value of goods sought to be imported. Custom duties comprises of

• Basic Custom Duties(BCD)
• Additional Custom Duties(ACD) or popularly known as Countervailing duty which is leviable inlieu of CentralExcise.
• Special Additional Duty (SAD)

Above duties are applied on Assessable Value(AV).

1. CIF (Cost+Insurance+Freight) value of goods sought to be imported in Foreign Currency is captured
2. Above value is converted to INR by adopting rates declared by customs which is known as Customs Notified  Rates.
3. 1% of the above value( INR) is computed and this is known as Landing Charges.
4. (2+3 ) Isconsidered as Assessable Value(AV)

CA  S.Thulasidharan

Trivandrum

24/10/2011