This is to update you that CBEC has issued by Notification
91/2017(NT) dated 26 September 2017 which amends the Customs Valuation
(Determination of Value of Imported Goods) Rules, 2007.
Further, a
circular 39/2017 dated 26 September 2017 has also been issued clarifying the
key changes that have been made vide the amendment Notification. We have
summarised the amendments below for your ease of reference:
·
Definition
of the term ‘place of importation’ :The “place of importation” has
now
been defined as the customs station where the goods are brought for clearance
or removal. By virtue of this amendment, the transaction value as per section
14 of the Customs Act, 1962 would include the costs incurred upto customs
station as defined above.
·
Computation
of freight and insurance: Clarity has been given for computation of cost of
transport and insurance charges in cases when actuals of each individual
element are not known, but the cumulative value of FOB and freight, or, FOB and
insurance charges are known.
·
Treatment
of the loading, unloading and handling charges: The loading,
unloading and handling charges associated with the delivery of the imported
goods at the place of importation, shall no longer be added to
the CIF value of the goods
·
The
phrase “loading, unloading and handling charges” appearing in the amended Rule
10 (2) (a) is to be understood in context of Article 8(2) of the WTO Agreement
which reads as “the cost of transport of the imported goods to the
port or place of importation”. Thus, only charges incurred for
delivery of goods “to” the place of
importation (such as the loading and handling charges incurred at the load
port) shall now be includible in the transaction value.
Given
the above, the notional charge of 1% on the CIF value will no longer required
to be added to the CIF value for computation of Customs duty.
·
Treatment
of transhipment costs:
Costs related to transhipment of goods (from ports to ICDs, port to port, port
to CFS, Airport to Airport etc.) within India will be excluded from the
transaction value of the goods. Earlier only the transshipment charges with
respect to a container being moved from port to an ICD and CFS were excluded
from the transaction value.
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