Valuation factors - CBEC's Customs Manual 2023 - Customs

6. Valuation factors: 6.1 Valuation factors are the various elements which must be taken into account by addition (factors by addition) to the extent these are not already included in the price actually paid or payable or by deduction (factors by deduction) from the total price incurred in determining the Customs value, for assessment purposes. 6.2 Factors by addition are the following charges: (i) Commissions and brokerage, except buying commissions; (ii) The cost of containers, which are treated as being one with the goods in question for Customs purposes; (iii) The cost of packing whether for labour or materials; (iv) The value, apportioned as appropriate, of the following goods and services where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale for export of the imported goods, to the extent that such value has not been included in the price actually paid or payable, namely: a) Material, components, parts and similar items incorporated in the imported goods; b) Tools, dies, moulds and similar items used in the production of the imported goods; c) Materials consumed in the imported goods; and (v) Engineering, developing, artwork, design work, and plans and sketches undertaken elsewhere than in the importing country and necessary for the production of the imported goods; (vi) Royalties and license fees related to imported goods being valued that the buyer must pay either directly or indirectly, as a condition of sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable; (vii) The value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller; (viii) Advance payments; (ix) The cost of transport, loading, unloading and handling charges associated with the delivery of the imported goods to the pace of importation wherein the cost of transportation includes ship demurrage charges on chartered vessels, lighterage and barge charges; and (x) The cost of insurance to the place of importation. (xi) all other payments actually made or to be 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 to the extent that such payments are not included in the price actually paid or payable. {This sub-clause is not included in the draft text but is a part of Rule 10 (1) (e) } Wherein the place of importation means the customs station, where the goods are brought for being cleared for home consumption or for being removed for deposit in a warehouse. [Refer Notification No. 91/2017-Cus (N.T.) dated 26.09.2017 and Circular No. 39/2017 dated 26.09.2017 ] 6.3 As regards (v) and (vi) above, an explanation to Rule 10(1) clarifies that the royalty, licence fee or any other payment for a process, whether patented or otherwise, is includible referred to in clauses (c) and (e), such charges shall be added to the price actually paid or payable for the imported goods, notwithstanding the fact that such goods may be subjected to the said process after importation of such goods. [Refer Circular No. 38/2007-Cus, dated 9-10-2007 ] 6.4 Factors by deduction are the following charges provided they are separately declared in the commercial invoices: (i) Interest charges for deferred payment; (ii) Post-importation charges (e.g., inland transportation charges, installation or erection charges, etc.); and (iii) Duties and taxes payable in the importing country.