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TMI BlogCustoms ValuationX X X X Extracts X X X X X X X X Extracts X X X X ..... uly-August, 1988 when present version came into operation. Briefly the provisions are explained in the following paragraphs. Tariff Value: 2. The Central Government has been empowered to fix values, under sub-section (2) of Section 14 of the Customs Act, 1962 for any product which are called Tariff Values. If tariff values are fixed for any goods, ad valorem duties are to be calculated with reference to such tariff values. The tariff values may be fixed for any class of imported or export goods having regard to the trend of value of such or like goods and the same has to be notified in the official gazette. Recently tariff values have been fixed in respect of import of Crude Palm Oil, RBD Palm Oil, RBD Palmolein under Notification No.36/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T. The Customs Valuation Rules, closely follow the WTO Customs Valuation Agreement to implement Article VII of GATT. The methods of valuation prescribed therein are of a hierarchical order. The importer is required to truthfully declare the value in the B/E and also provide a copy of the invoice and file a valuation declaration in the prescribed form to facilitate correct and expeditious determination of value for assessment purposes. Methods of Valuation: 7. According to the Customs Valuation Rules, 1988, the Customs Value should normally be the "Transaction Value", i.e., the price actually paid or payable after adjustment by Valuation Factors (see below) and subject to (a) Compliance with the Valuation Conditions (see below) and (b) Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... country of production (Rule 7A); * Fallback Method - Based on previous methods with greater flexibility (Rule 8). VALUATION FACTORS: 11. Valuation Factors are the various elements which must be taken into account by addition (Dutiable factors) to the extent these are shown to be not already included in the price actually paid or payable or deduction (Non-dutiable factors) from the total price incurred in determining the Customs Value, for assessment purposes. Dutiable Factors: * Commissions and brokerage, except buying commissions; * The cost of containers which are treated as being one for Customs purposes with the goods in question; * The cost of packing whether for labour or materials; * The value, apportioned as appropriat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harges, installation or erection charges, etc.); * Duties and taxes payable in the importing country. Cases where transaction value may be rejected: 12. The transaction value may not be accepted for customs valuation in the following categories of cases as provided in Rule 4(2):- (a) If there are restrictions on use or disposition of the goods by the buyer. However, the transaction value not to be rejected on this ground if restrictions: (i) are imposed by law or public authorities in India; (ii) limit geographical area of resale; (iii) do not affect the value of the goods substantially. (b) If the sale or price is subject to a Condition or consideration for which a Value cannot be determined. However, conditions or consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trative and judicial members. A third appeal lies to the Supreme Court of India. The importer is informed regarding his rights of appeal by each of the adjudicating and appellate authorities. Provisional clearance of imported goods: 15. Section 18 of the Customs Act, 1962 and Customs (provisional duty assessment regulation), 1963 [M.F. (D.R.) Notification No.181-Cus., dated 13th July, 1963], allows an importer to provisionally clear the imported goods from Customs pending final determination of value by giving a guarantee in the form of surety, security deposit or bank guarantee. Valuation of Imported goods in case of related party transaction: 16. Sub-rule 2 of Rule 2 of Customs Valuation Rules, 1988 has enumerated the persons who shal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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