Customs Valuation-Air Freight Restiction

Dear All,

The importer's invoice is as follows :

Raw Material Cost                              $   6,792.00
Air Freight                                             $ 10,400.00

Total CFR                                             $ 17,192.00

While filing BOE with Customs department our C&F Agents are showing the Air Freight charges of $ 10,400 as Miscellaneous Charges and clearing the goods, in my opinion our company is paying excess duty as we not considering the 20% restriction of Air Freight on FOB for customs valuation purposes.

Duty is to be paid as Customs valuation Rules is as follows :

CFR Value                                           $ 17,192.00
Less : Air Freight                                $10,400.00

FOB                                                      $ 6,792.00
ADD : Air Freight                                 $ 1358.40
(Restricted to 20% of FOB)
CIF value for customs valuation      $ 8,150.40


Please suggest  me whether our C&F is correct in Customs valuation or my calculations are correct. please do the needful at the earliest.

Thanks in advance.

Regards,

S.V.Ramana