CUSTOMS - SALE OF IMPORTED GOODS ON HIGH SEAS – DETERMINATION OF VALUE FOR ASSESSMENT - REG. - Customs - 10/2004-Tuticorin

Public Notice : 10/2004-Tuticorin Dated On : 05-03-2004 1. Attention of the Importers, Custom House Agents, Trading Public and all others concerned, is invited to the Customs Valuations Rules, 1988 and to the various instructions issued by the Ministry on valuation of imported goods. In order to determination of the value in high seas sales, the relevant transaction should be the one that takes place on the high-seas and the last buyer shall be regarded as the importer. 2. As per the existing practice in Tuticorin Custom House, the "High-seas sales charges" declared by the original importer and High seas sales buyer are added in the declared CIF value. Such "High-Seas sales charges" are taken to be 2% of the CIF value as a general practice. However, in cases, where actual "High-seas sales charges" are more than 2% on the CIF value, then the actual charges are required to be added to the CIF value. 3. It is further clarified that, in case the actual "High-seas Sale contract Price" is known/ascertainable and the same is more than the "CIF value plus 2%" of CIF value as "High-seas sales charges" then the "actual sale" contract price paid/payable by the High-seas sale buyer has to be taken as the value for the purpose of duty assessment.