Section 14 of Customs Act for Assessable Value

3150 views 2 replies

surinder singh

accounting firm

53 Points Posted on 16 April 2011

Dear Friends,

Can u pls help me out regarding the Custom Valuation Rules for the below case-

1) If there is an Import of goods in India, the freight terms (Air) of the shippment is exw-work charges on collect basis. Now the freight & forwarder billed us for Air freight Rs 300 & Exw work charges Rs 100. The cost of goods as per the commericial invoice is Rs 1000/- Now how much Air freight value & exw- charges will be added with the Commericial invoice value to determine the assessable value under the customs valuation act under section 14 of the customs act.

2) If this import is through Sea & all above conditions & value remains same, how much the Sea freight & exw work charges will be added with the commericial invoice value to determine the assessable value under customs act .

Replies (2)

RAMESH KUMAR VERMA

CS PURSUING

43853 Points Posted on 16 April 2011

for more inforamtion regarding the subject link is :

https://218.248.28.31/customs/cs-manual/manual_6.htm

surinder singh

accounting firm

53 Points Posted on 16 April 2011

Originally posted by : RAMESH KUMAR VERMA
	for more inforamtion regarding the subject link is : https://218.248.28.31/customs/cs-manual/manual_6.htm

Many thnx Mr Verma, but I normally sees that all CHA's as well as Custom evaluate the duty on the basis of FOB even if the freight payment terms are Exw-work charges & custom deptt straright away takes the 20% of commericial invoice value as freight. Is this is fine? Will be very thankful if you can explain the same through my above question. Thnx in advance for your valuable sharing.....