Transaction value - CBEC's Customs Manual 2023 - Customs

5. Transaction value: 5.1 Rule 3(1) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 states that subject to rule 12 , the value of imported goods shall be the transaction value adjusted in accordance with the provisions of its Rule 10 . 5.2 The price actually paid or payable is the total payment made or to be made by the buyer to the seller or for the benefit of the seller for the imported goods. It includes all payments made as a condition of sale of the imported goods by the buyer to the seller or by the buyer to a third party to satisfy an obligation of the seller. 5.3 If objective and quantifiable data do not exist with regard to the valuation factors, if the valuation conditions are not fulfilled, or if Customs authorities have doubts concerning the truth or accuracy of the declared value in terms of Rule 12 of the said Valuation Rules, 2007 the valuation has to be carried out by other methods in the following hierarchical order: (i) Comparative Value Method - Comparison with transaction value of identical goods ( Rule 4 ); (ii) Comparative Value Method - Comparison with transaction value of similar goods ( Rule 5 ); (iii) Deductive Value Method - Based on sale price in importing country ( Rule 7 ); (iv) Computed Value Method - Based on cost of materials, fabrication and profit in country of production ( Rule 8 ); and (v) Fallback Method - Based on earlier methods with greater flexibility ( Rule 9 ).