Customs Valuation-Air Freight Restiction

Dear All,

The importer's invoice is as follows :

Raw Material Cost                              $   6,792.00
Air Freight                                             $ 10,400.00

Total CFR                                             $ 17,192.00

While filing BOE with Customs department our C&F Agents are showing the Air Freight charges of $ 10,400 as Miscellaneous Charges and clearing the goods, in my opinion our company is paying excess duty as we not considering the 20% restriction of Air Freight on FOB for customs valuation purposes.

Duty is to be paid as Customs valuation Rules is as follows :

CFR Value                                           $ 17,192.00
Less : Air Freight                                $10,400.00

FOB                                                      $ 6,792.00
ADD : Air Freight                                 $ 1358.40
(Restricted to 20% of FOB)
CIF value for customs valuation      $ 8,150.40


Please suggest  me whether our C&F is correct in Customs valuation or my calculations are correct. please do the needful at the earliest.



Thanks in advance.

Regards,

S.V.Ramana

HI,

Your are right  freight must be restricted to 20% of your value .

Freight can not be more than 20% in case of  air consignment.

rgds.,

c a ashok  kumar saini