Venkata Ramana Sriram (Service) (119 Points)
06 July 2010The Importers invoice is as follows :
Raw Material Cost $ 1,00,000.00
Air Freight $ 50,000.00
CFR Chennai Air Port $ 1,50,000.00
Let me know the Customs calculation in this regard.
Air Freight Restriction of 20% is for both FOB and CIF or only for FOB Imports. Our C&F is claiming that that restriction is only for FOB imports and not for CIF imports? Is he Correct ?
Please clarify in this regard. Thanks in this regard.
CA MARUTHI GANDHI
(JOB)
(60 Points)
Replied 06 July 2010
In the case of imports by Air fright. Freight charges will be limited to 20% of FOB price. this is the maximum limit. It is irrelevent whether it is FOB purchase or CIF purchase.
so in this case 20% of FOB cost will be assumed as Air Freight. that may be 20% on matrial cost.
Amar Kumar Agrawal
(domain expert(custom clearance))
(26 Points)
Replied 13 June 2023
In air import, There is no limit of air freight but it says that maximum 20% of air freight can be added in assessable & assessable value is the base of duty calculation in import.
CAclubindia
