Sale of Imported Goods on High Seas – Determination of value for assessment – Regarding. - Customs - 145/2002

OFFICE OF THE COMMISSIONER OF CUSTOMS (IMPORT) NEW CUSTOMS HOUSE, BALLARD ESTATE MUMBAI 400001 F. No. S/26-345/2002 A(G) Date : 03.12.2002 P. N. No. 145/2002 Sub : Sale of Imported Goods on High Seas Determination of value for assessment Regarding. Attention of all the importers/ CHAs /Trade and all the concerned is invited to P. N. No. 155 dated 18.09.1992 read with P. N. No. 33 dated 04.03.1999, wherein it is provided that the relevant transaction for determination of the value in high seas sale should be one that takes place on the high seas and the last buyter shall be regarded as the importer. 2. As per existing practice in Mumbai Custom House, the High-seas-sales-charges declared by the original importer and the 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-sea-sales-charges are more than 2% of the CIF value then the actual charges are required to be added to the CIF value. 3. In this connection it may be 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-Sale-Charges , then the actual sale contract price paid/payable by the high-seas-sale-buyer has to be taken as the value for the propose of duty assessment. 4. The aforesaid provisions are brought to the notice of all concerned for information and strict compliance. (A. HUSSAIN) COMMISSIONER OF CUSTOMS (IMPORT)