imports - Air freight Restriction

Venkata Ramana Sriram (Service) (119 Points)

06 July 2010  

The Importers invoice is as follows :

Raw Material Cost                                  $ 1,00,000.00

Air Freight                                                 $ 50,000.00

CFR Chennai Air Port                            $ 1,50,000.00

Let me know the Customs calculation in this regard.

Air Freight Restriction of 20% is for  both FOB and CIF or only for FOB Imports. Our C&F is claiming that that restriction is only for FOB imports and not for CIF imports? Is he Correct ?

Please clarify in this regard. Thanks in this regard.