How is customs value calculated in India?

How is customs value calculated in India?

In India, custom duties are evaluated on the basis of Ad Valorem (the value of the goods) or Specific basis. Rule 3(i) of Customs Violation (Determination of Value of Imported Goods) Rules, 2007 determines the value of goods.

What is assessable value under customs Act?

1. Value for purpose of Customs Act. Customs duty is payable as a percentage of ‘Value’ often called ‘Assessable Value’ or ‘Customs Value’. The Value may be either (a) ‘Value’ as defined in section 14(1) of Customs Act or (b) Tariff value prescribed under section 14(2) of Customs Act.

How is custom duty calculated with example?

Custom Duty Rates

1. LC: Landing charge – 1% CIF.
2. CVD: Countervailing Duty – 0%, 6% or 12% (CIFD + LC)
3. CEX: Education and Higher Education Cess – 3% CVD.
4. CESS: Education + Higher Education – 3% (Duty + CEX (Education and Higher Education Cess) + CVD)
5. Additional CVD: 4% (CIFD + LC + CVD + CESS + CEX)

How do you find assessable value?

To calculate the assessable value, sum together the cost of goods sold, cost of insurance, handling charges, and freight cost together.

How is custom value calculated?

Customs Value is the total value of all items in your shipment and determines how much import duty the package recipient must pay. For example, if you are shipping 10 dresses each valued at US$25.00 (or local currency equivalent), then you would enter a customs value of US$250.00.