Page 140 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 6: Custom Clearance of Import and Export Cargo

payable for the goods when sold for export to India, adjusted in accordance with the provisions Notes
of Rule 9.
The price actually paid or payable should be adjusted to include all the costs and services
(dutiable valuation factors) specified in sub-Rule 9 (1) (see below) if not already included in the
invoice value. In short, the transaction value should be determined by suitably adjusting the
declared value so as to include 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.
Since the assessment is on CIF basis, the invoice value should be suitably adjusted to include the
freight, insurance and handling charges as applicable under sub-Rule 9 (2).

Valuation Factors

Valuation Factors (see Rule 9) are the various elements (dutiable factors), which should be added
while determining the Customs value. The factors should be added to the extent they are not
already included in the price actually paid or payable (invoice value). These dutiable factors are:

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 labor or materials;

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:-
material, components, parts and similar items incorporated in the imported goods;
tools, dies, moulds and similar items used in the production of the imported goods;
materials consumed in the imported goods;
engineering, developing, artwork, design work, and plans and sketches undertaken
elsewhere than in the importing country and necessary for the production of imported
goods;

Royalties and license fees related to 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;

The value of any part of the proceeds of any subsequent resale, disposal or use of the goods
that accrues directly or indirectly to the seller;
Advance payments;
Freight charges up to the place of importation;

Loading, unloading and handling charges associated with transporting the goods;
Insurance.

Non-dutiable Factors

The following charges are not to be added for the purposes of determining the Customs value
provided they are clearly distinguishable and separately declared in the commercial invoice:

Buying commission;
Interest charges for deferred payment;

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