Assessable value
This query is : Resolved
30 June 2013
I have alredy gone through the link.The link also does not give complete answer to the query.Because the link say CIF vaue means CIF price paid or payable to the Exporter....... the price inludes Freight and Insurance cost which means the expert belives that Import is always done by CIF value it not correct,import is also done on Ex works price,FOB (Free On Board) Price,C&F ( Cost and Freight) price.The Expert does not say how to calculate assessable if expoert is on EX work,FOB or on C&F basis The Expert also does not say how to calculate assessable if the import is on Ex work,FOB or C&F and the importer does not submit proof of Freight paid or payable and Insurance charge.
As an expert he must give complete reply.
From Mr.Malay Pota
As an expert he must give complete reply.
From Mr.Malay Pota
14 August 2013
MR. MALYA POTA JI,
Import duty is calculated on the assessable value of goods imported. In simple terms, 1% added to CIF value of imports is assessable value. Let me explain the method of calculating assessable value by customs department. For example, you have imported goods worth USD 1000.00 FOB value. If any design and development charges involved, the same cost is added – say USD 100.00. In order to find CIF value, the freight and insurance cost are to be added. 20% of FOB value is taken as freight. Means USD 200.00. Insurance is calculated as 1.125% - USD 13.00 (rounded off). The total amount of CIF value works out to USD 1313.00. If any local agency commission involved, the same also is added on CIF value of goods - say 2% on FOB – USD 20.00. So the total amount works out to USD 1333.00. The said value of USD 1333.00 is converted in to local currency . The exchange rate of foreign currencies is decided time to time by customs and issues notification frequently. Once after adding up 1% on the said amount you will get assessable value. The duty amount is calculated on the said assessable value.
PLEASE READ THE FOLLOWING LINK:
https://www.caclubindia.com/experts/f-o-b-and-c-i-f--1611.asp
Import duty is calculated on the assessable value of goods imported. In simple terms, 1% added to CIF value of imports is assessable value. Let me explain the method of calculating assessable value by customs department. For example, you have imported goods worth USD 1000.00 FOB value. If any design and development charges involved, the same cost is added – say USD 100.00. In order to find CIF value, the freight and insurance cost are to be added. 20% of FOB value is taken as freight. Means USD 200.00. Insurance is calculated as 1.125% - USD 13.00 (rounded off). The total amount of CIF value works out to USD 1313.00. If any local agency commission involved, the same also is added on CIF value of goods - say 2% on FOB – USD 20.00. So the total amount works out to USD 1333.00. The said value of USD 1333.00 is converted in to local currency . The exchange rate of foreign currencies is decided time to time by customs and issues notification frequently. Once after adding up 1% on the said amount you will get assessable value. The duty amount is calculated on the said assessable value.
PLEASE READ THE FOLLOWING LINK:
https://www.caclubindia.com/experts/f-o-b-and-c-i-f--1611.asp
21 August 2013
Dear Expert
Can you inform us Customs will add 20% of FOB as Freight? and of which amount the Customs will take 1.125% as insurance charge ?
Malay Pota
Can you inform us Customs will add 20% of FOB as Freight? and of which amount the Customs will take 1.125% as insurance charge ?
Malay Pota
22 August 2013
Rate of commission does not exceed 12.5% of invoice value.
further more information link is:
http://www.rbi.org.in/scripts/ECMUserChapterDetail.aspx?Id=292&CatID=13
further more information link is:
http://www.rbi.org.in/scripts/ECMUserChapterDetail.aspx?Id=292&CatID=13
22 August 2013
Dear Expert
My question is the Customs will consider 20% of FOB as freight in all cases of Import on FOB basis? of which amount the Customs will take 1.125% as insurance charges?.
Secondly your reply of Commission as the commission does not exceed 12.5% of Invoice value is NOT CORRECT NOW this is an old provision.What is new provision?
Please inform
Malay Pota
My question is the Customs will consider 20% of FOB as freight in all cases of Import on FOB basis? of which amount the Customs will take 1.125% as insurance charges?.
Secondly your reply of Commission as the commission does not exceed 12.5% of Invoice value is NOT CORRECT NOW this is an old provision.What is new provision?
Please inform
Malay Pota
22 August 2013
If the air freight amount is not ascertainable or if the actual air freight is more than 20% of FOB,then 20% of FOB is considered as the air freight for calculation of CIF value.
as per Transaction value of imports (14)& Rule 3(1) read with rule 10
(ii) it is provision so far.
as per Transaction value of imports (14)& Rule 3(1) read with rule 10
(ii) it is provision so far.
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22 August 2013
Then what about Sea Freight if consignment imported FOB by Sea?
No no,it is heard that the provision of Commission has changed in FEMA
No no,it is heard that the provision of Commission has changed in FEMA
30 September 2013
sir/madam, same law applicable.
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