Someone please help me to come out of this confusion.
CIF - Cost Insurance Freight
Customs must be applied on Invoice value of product.
why on Insurance & Freight?
please clear my doubt.
Thanks.
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Customs on cif
Replies (1)
CIF value (Cost, insurance and freight) and landing charges s the normal basis. In addition, any royalty or service charges etc. paid or payable by the importers are also to be added. Value for the purpose of charging duty on imported goods determined under Section14 of the Customs Act 1962 read with Customs valuation (Determination of Prices of Imported Goods) rules, 1988. The actual landing charges or at the prescribed rate are also to be added. If the invoice shows the clue of FOB ( Free on Board) actual freight and insurance charges have to be added if the import is by Sea. In the absence of actual charges, notional charges at 20% on FOB value as fixed by the Government have to be added. However, in the case of certain bulk cargos where freight is more than FOB value, the actual freight has to be added. In the case of import by Air when the invoice value is FOB, actual freight and insurance or notional freight (20% of FOB presently) and notional insurance (1,125 % of FOB presently), whichever is less are added to the FOB value. This becomes CIF clue arrived at by adding all these elements is known as “Assessable Value”. Basic customs duty is leviable on such assessable value.
read the below mentioned link if you have any query ask:
https://www.chennaicustoms.gov.in/imports/val.htm
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