How is assessable value calculated by customs for imports? Posted on 08 April 2023 Category : Import The information provided here is part of Export Import Online Tutorial How assessable value is calculated by customs for imports? How is assessable value calculated by Customs for determining Import Duty? Import duty is calculated on the basis of assessable value of goods imported. How to find assessable value of goods imported? I this article, I would like to explain the method of calculating assessable value of imported goods in simple and easy to understand. I hope this method of calculating assessable value helps importers and exporters to find import duty. Method of calculating Assessable Value under import of goods in India. 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 with a simple example to make you easily understand. 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 CIF 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 import duty amount is calculated on the said assessable value. Please note, I have given the above example on an import under FOB terms of delivery. The above example is only a basic structure adopted by Customs department. Means, if no design and development charges or no agency commission involved, such information can be omitted to calculate Assessable value. Moreover, if the consignment is on CFR, CIF, DAP, DDU, DDP or any other Inco Terms, you can declare the actual freight amount and insurance amount. However, such amount of freight and insurance should not be an abnormal amount than market value. These value is mentioned electronically when filing Bill of Entry with customs for import clearance procedure by importer or his Customs House Agent. Each product is classified with ITC code number accepted globally by all countries. Read here to know about ITC code number. I hope, I could explain the calculation of assessable value under imports with example in simple language to make you easily understand. Do you more information to add up to this subject about calculation of assessable value of goods? Share your experience in calculating assessable value to determine import duty under import customs clearance procedures and formalities. The above information is a part of Import Export Training online Have you satisfied with this article explaining the method of calculating assessable value to find duty amount of imported goods in India? Comment below your thoughts on this subject - How to calculate assessable value in import customs clearance? Other details on how to import export Duty calculation in Advance filing of Bill of Entry in INDIA Difference between Demurrage and Detention in import Difference between first check appraisement and second check appraisement in imports Assessment / Appraising procedures of Imported goods How can a Freight forwarder provide airfreight rates better than airlines How to start Export Business? How to get Export Orders? What are the risks and solutions in Export Business? 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GST and e-Commerce Business, FAQ Definition of E-Commerce under GST Factory stuffing procedures after GST implementation Import of goods attracts IGST but not CVD under GST regime Import goods attracts IGST and CVD under GST regime Import Goods attract IGST, CVD and Compensation Cess under GST regime Safeguard duty and Anti-dumping duty after GST implementation Comments Adithya: On 26 June 2013 Sir, Is it required the assessable value be claculated only on CIF instead of CFR or FOB ? "assessable" its should have been only the Basic price or say at max. FOB, why the Insurance or Freight to be taken for assesable value. Just wanted to to know the intent behid the calculation Adithya VANDANA SHARMA: On 03 October 2013 Sir, The articles are very useful and easy to understand. Wish you should always be writing on each and every term and condition of exports and imports. Your articles are really beneficially not only for beginners but for experienced also. Pl give article on INCO terms also in details. Ravindra Patil: On 11 December 2013 From where can we get the actual current duty value levied on materials imported wide various HSS Codes? Chahat: On 11 January 2014 Sir, thanks for sharing this article. i) Please confirm if FSC/SSC charges applicable in Air Freight should be included in the Freight. We sum up Freight and CC Fees for calculating Freight. Do we also need to add FSC and SSC Charges. ii) If these charges are not to be mentioned as freight then it implies that no Customs duty is applicable on FSC/SSC Charges. Is it true? N S ADHIKARI: On 15 January 2014 How assessable value is calculated by customs for imports? HOW WE CAN CALCULATE ASSESSABLE VALUE AS PER CUSTOM DEPARTMENT (TKD DELHI) IN FOLLOWING DETAILS QTY NET 14.740 MT GROSS 15.486 MT. USD PAID 7370 *62.58/-INR CUSTOM USD RATE 62.35 ASSESSABLE VALUE AS PER CUSTOM DEPTT. 802564.53 INR ? CUSTOM DUTY 231555.00 INR THAN HOW WE CALCULATE THE ASSESSABLE VALUE RS.802564.53 anjali: On 15 February 2014 What is the difference between basic sale value and assessable value? Surendran Kollerath: On 08 March 2014 Hi Ravindra Patil, You can find online from authorized agencies. www.howtoexportimport.com is launching this arrangements shortly. Surendran Kollerath: On 09 March 2014 Hi Chahat, There is a balancing freight charges from port of loading to port of delivery adopted based on different parameters by customs authorities of importing countries. In other words, most of customs of importing countries fix a minimum percentage of freight amount. Vidya : On 26 June 2014 Separate Air Freight Invoice. If the Consignor send a separate invoice for Air Freight charges, how it can be entered in the Bill of Entry. He is not in a position to add freight in the individual invoices. Example (Inv No) (Date) ) Art No)(Description)(UOM)( Rate/PerPC USD) (NetValueUSD 90123456849- 21-12-13 PRD-01 ABC CHEM PC 20 100 2000 90123456850-21-12-13 PRD-02 DEF CHEM PC 30 150 4500 90123456851-21-12-13 PRD-03 GHI CHEM PC 40 300 12000 90123653860-24-12-13 AIR FREIGHT FOR INV 90123456849/50 & 51 700 These are the 4 invoices and the consignee has to pay - USD 18500 being the Commodity Value and USD 700 as freight and Net payable is USD 19200. In the Bill of Entry it is easy to show the commodity Invoices 90123456849, 50 & 51 but how can they show Invoice No 90123653860 dated 24-12-13. Is there any provision to show exclusive freight value in the BE since Freight itself is not a commodity. Without all the invoices shown on the BOE the bank will not allow remittance. Put together this shipment is under INCO Terms C&F or DAT . Is there any solution? Rahul : On 02 July 2014 Hi, I have query let assume example as under, By Sea, FOB Price is 100 Freight is 5 Insurance is 2 so total ass. value will be 108.07 By Air FOB Price is 100 Freight is 25 Insurance is 2 so total ass. value will be 128.27 Good are same & even imported under same hs code Let say avg total duty is 30% of ass value so Duty for SEA shipment will be 32.42 & for air shipment it is 38.48 so there is difference of 6 Basic purpose of import duty is to protect domestic industry & product valuation should be same so why does customs doesn't standard freight as buyer or seller decides the mode based on urgency of the material. why customs charge different duty on same products. SVBHASKER: On 12 July 2014 Sir, Good article on computation of customs duty with illustrations taking incoterm FOB. It is also mentioned in the article that if the consignment is on CFR, CIF, DAP, DDU, DDP or any other Inco Terms, one can declare the actual freight amount and insurance amount. But if the terms of invoice(TOI) is mentioned as CIF and the Bill of Entry is ticked as CIF, then the system does not allow the CHA/importer to put freight amount on BE. In that case, is it advisable legally to separate cost, insurance and freight elements of CIF so as to fill the Bill of Entry ticking terms of invoice as FOB. Can CIF terms be converted as FOB so to pay customs duty legally.Learned author and the readers are requested to respond with provisions of law and CBEC circulars on the issue. RAJI REDDY. K: On 13 July 2014 Hello Vidya, You have informed that terms of invoice is C&F. Then it is not understood, why freight is not included in the commodity value in first place. The very term C&F indicate that the price in the invoice is sum total of commodity cost and freight. I think system does not have a provision to show freight amount when you tick CIF as Terms of invoice on the Bill of Entry. Now the option left in the present case is to split freight element of USD 700 in three proportions in the ratio of weight of the goods in three invoices mentioned and show as miscellaneous charges on the Bill of Entry . Hope you are convinced. Sainath Kalangutkar: On 23 July 2014 Sir, I just want to know what would be the import duty structure if the cost of goods is less then the cost of tooling development? I am planning to import some Bare PCB's from Hongkong. The cost of goods is USD 6.54 and development cost is USD 1340 In such case the how the duties are calculated and what would be the import duty structure? MAHESH S AKERKAR: On 25 July 2014 Sir, We as exporters entered into contract with buyer that he should nominate a vsl with crane for loading and FOB price was agreed. Also, it was accepted by the buyer, that in case, he nominates a vsl without crane then, he will make arrangement for loading the cargo into the vsl and we will only keep the cargo alongside the vessel in barges. SB was filed with FOB value in the contract. Vsl was loaded and left the port. Later, it was brought to our notice, that as the transaction is FOB, the loading charges paid by the buyer should be included in the cost of FOB and duty to be paid for the loading charges including the service tax element on loading. Pls clarify on follwg : 1. Duty was paid incl. differential duty as per the Bank Realisation Certificate. 2. Buyer has paid the loading charges as agreed in the contract for nominating a vsl without crane. 3. Exporter is eligible for Service Tax refund if he has made loading arrangements. In this case, the buyer made arrangement and the Loading operator raised invoice on buyer. In such case, is the duty applicable on (a) Both Loading + Service tax or (b) only on the loading charges. Reply on above, may kindly be sent on most urgent basis to akerkar.ccl@chowgule.co.in rgds MAHESH Dmitry Lebedev: On 02 September 2014 good day! We have inquiry fr delivery and Customs clearance of 1 roll to Bokaro. Pls advise if it possibile to effect customs clearance without payment if import Customs dues, as this roll 'll be shipped instead of the defective one. Customs code 8455 3031 00 Shipper and Cnee ready to provide any documents confirmed defect of previous roll and confirmed that new roll hv same specifications. In case of positive reply, Shipper ‘ll provide us cgo details. Either, pls advise what terms must be met to rcvd right for duty-free import of roll. In case Customs dues to be paid in any case, pls provide us copy of confirming / explaining document or address of website, when we can find this information. 'll appreciate fr your soonest reply and comments. thanks and brgds Dmitry Lebedev N.YOGEESWAR: On 12 September 2014 how to calculate high sea sales amount and how to calculate rsp N.YOGEESWAR: On 12 September 2014 WHAT IS THE DIFFERENCE BETWEEN RSP AND MRP WETHER SAD4% IS NOT CLAIM MRP STICKER AFFIX ON THE ITEM OR SAD4% IS CLAIM THE MRP STICKER NOT AFFIX ON THE PARCEL PLS CLARIFY DETAILS OF MRP Johne414: On 21 September 2014 Thanks for another wonderful article. Where else could anybody get that kind of information in such an ideal way of writing? I have a presentation next week, and I'm on the look for such information. fgdecefdbfac Johnd822: On 21 September 2014 whoah this blog is excellent i really like reading your articles. Stay up the good work! You already know, many persons are looking around for this info, you could help them greatly. cgdbkcbfdddd vijay bansal: On 10 November 2014 i am a customs broker and would like be a part of this discussion form i can advise Mr.Dmitry Lebedev about customs duty aspect provided all relevent documents r available Sumit Arya: On 25 November 2014 Sir, Do we pay this 1% to customs or it is just used to calculate duty. please clarify. regards Admin: On 25 November 2014 Hi Sumit Arya, 1% is added on CIF value for customs calculation of assassable value purpose only Admin: On 25 November 2014 Hi Sumit Arya, 1% is added on CIF value for customs calculation of assassable value purpose only Ranjit Gurav: On 17 December 2014 Dear Sir, In case of Imports with Invoice value 500 USD,While deriving Assessable value for EXW incoterm, if the Origin charges are 100 USD & Port to Port Freight is 80 USD So total Charges till Mumbai is 180 USD then How much we have to take freight for calculating Duty 1.Does it will be 180 USD ? 2.Does it will be 20 % of 500 USD? 3.Does it will be 20% of 180 USD? Kindly clarify on this & also please inform the circular or notification no. on this topic to refer. RAJI REDDY. K: On 18 December 2014 Dear Ranjit, In my personal view, you have to add origin charges of 100 USD to 500 USD of EX Works incoterms to arrive at FOB value of 600 USD first. Then take port to port freight of 80 USD. Please refer Rule 10(2) of Customs Valuation (Determination of Value of Imported Goods) Rules 2007. Mention FOB value as 600 USD in Bill of Entry and 80 USD as freight in the columns provided on Bill of Entry in addition to insurance and other 1% landing charges of FOB . In case actual Air freight incurred is more than 20% of FOB, then the freight is restricted to 20% of FOB in terms of above valuation Rules. Sounder: On 03 February 2015 Hey My Supplier agreed to reduce the value of goods from USD 600 to USD 180 dollars in the invoice. on which value i will be charged for customs Admin: On 04 February 2015 Hi Sounder, You can amend commercial invoice before filing import documents to customs of importing country. However, such reduction of value in invoice should not be an abnormal value of market price of same product in importing country. Syed: On 12 February 2015 My name is Syed. An importer in Ireland. Recently i have a container rejected by irish goverment authority for not declearing product on related documents therefore i shiped that container back to exporter. But I am woried about the money i have paid for. How to get my money back now?/ AMAN LAHKAR: On 13 February 2015 I want to buy a computer game( Fifa 15 ) from Amazon.com. As this game is not available on Amazon.com.India so i have to import it from Amazon.com.U.K. The game will cost me £37.52 which is in indian rupees equals to 3616.89 rs including packing and shipping but on delivery i have to pay import tax( VAT ) for it. So will u kindly tell me the amount i have to pay for import tax. Admin: On 13 February 2015 Hi Aman Lahkar, You may read our article about HOW TO FIND ASSESSABLE VALUE in this website ankush garg: On 10 March 2015 Hi this is ankush garg, We have always paid a custom duty as per SUGGESTED Value(SV) not actual Imported value (AIV) of goods. for example actual if AIV is 65/kg then sv if 75/kg hence making Assessable Value(AV) is 100/kg. is there any special rule in hardware which allows them to make calculation diffrently. Johnf33: On 18 May 2015 Im not that much of a online reader to be honest but your blogs really nice, keep it up! I'll go ahead and bookmark your site to come back later. Cheers dcdkbkadabgc Johne430: On 18 May 2015 Hello to every one, its truly a fastidious for me to visit this site, it contains helpful Information. ddegcddadkbb G RAVI KUMAR: On 27 May 2015 in the HSS shipment, HSS 2% will be calculated either CIF Value or Ass.Value i.e. CIF VALUE x 2% HSS value = x 1% LC = A.V. X BCD OR CIF VALUE X1%LC = A.VALE X 2% HSS = AV+HSS X BCD Rajesh Upadhayay: On 22 June 2015 dear sir please clarify suppose I import goods @ Rs 100/- per kg and discount also received from vendor @ Rs 10/- by way of credit note and same has been enclosed with invoice and invoice reference also mention on credit note. on the format of bill of entry discount column is also mention which please note. kindly suggest whether duty will be calculate on Rs 100/- on on after set off discount 100-10=90/- kind regards Rajesh Upadhayay Kruger India (Imports) : On 02 July 2015 We have following query, request you to please answer the same. 1. For preparing ARE-I the duty is calculatted on FOB OR CIF value ? 2. We have to export our product (industrial fans) to our parent company in Singapore for testing & return.We have to send the goods as no commercial shipment with GR waiver from bank. After testing our parent co. will charge testing charges. Now bank says that for closure of GR waiver the reimport value should match with export value for the GR waiver obtained. But as per customs we have to clear by paying duty on testing charges plus freight & insurence both ways not on total value of fans, since it is reimport after testing. Please advise us, how can we convice our banker to close the GR waiver. Also advice the freight to be declared on shipping bill as we have send the shipment on DDP basis. We have to declare Total freight from Mumbai Airport to Singapore factory or only Airport to Airport. Rajesh Upadhyay : On 08 July 2015 Please clarify the query regarding custom duty calculation method Suppose I have import goods @ Rs 100/- per kg and along with invoice supplier also give credit note/discount @ Rs 5/- per kg and credit note itself send along with invoice. Please suggest whether custom duty calculation will be done by custom authority @ Rs 100/- per kg or after set off the discount Rs 100-5=95 per kg. For your ready reference I want to share that discount column will also mention on bill of entry Adeel Aziz: On 14 July 2015 Dear, Thanks for useful article. Just to clarify can you advise if customer is importing to USA and invoice clearly mentions the FOB separately and then Freight is added. Then total C&F value is mentioned on invoice too. e.g. FOB Value: 1500 $ Freight: 250$ Total C&F: 1750$ Terms of Delivery: DDP Which value is Dutiable: ?? 1500$ or 1750$ Vishal Patial: On 24 July 2015 Why we add 1% Landing Charges after adding Freight & Insurance... Parth Enterprises : On 13 October 2015 Thanks for putting up a wonderful resource website of howtoexportimport.com. I'm a small time importer from Mumbai. If I may ask, I want to understand why is that there is difference in assessment value of same product across various port. For example 1.5mm clear glass sheet that I'm importing is last assesed at Rs. 123 / SQM @ Nhavasheva port, while in mundra / kolkata / cheenai ports, its valued at a very low prices. Can you put some light on this aspect. Also the assessment value rates are not published anywhere. How does one get access to this information? Richpal Singh: On 17 October 2015 Please clarify the query regarding if freight invoice is $10.50 PMT but giving with less commission 1.25% then will customs calculate duty on $ 10.50 or less commission? sasi kumar: On 18 November 2015 I have purchased one SAMSUNG LED HD tv ( SMART) and is taken as accompanying baggage on my travel to India from Saudi Arabia. Since I am an NRI, I am entitled for duty free import upto Rs. 45000/ > This TV costs only Rs. 35000/ in Saudi, whereas it may cost about Rs. 80000/- in india. In this case, how the customs is going to value the goods. I have a proof of invoice Ramesh Menon: On 24 November 2015 Hello, my query is regarding Ex-bond shipment clearance. We are based in a SEZ unit. I have a ex-bond shipment to be cleared from Panvel warehouse to Seepz. The supplier has raised an EXW invoice on us. Now while filling BOE at Seepz customs will there be a problem based on the incoterm as my invoice mentions term as EXW & as per my agent while filing BOE in Seepz freight needs to be mentioned separately while filing EXW invoice. Is it correct. Can I not file the total value of the invoice & not mention the freight in the BOE. Kindly advise Shakti Chauhan: On 05 December 2015 Dear sir Thanks for this information,i donot properly understand about custom duty under calculating HS Code 85258090 from SHENZHEN (CHINA) TO dELHI AIR CARGO (INDIA) Waiting for your reply, Shakti Chauhan (91-75289-34264) Srinivas: On 21 December 2015 Dear Sir, I had a query, is the total duty for any raw material to be paid on material cost only or duty need to be paid including freight also. SHARAD: On 01 January 2016 Dear Sir, Please provied the calculation of bill of entry as per detail gevin velow. purchase of primal (TM) 3208 emulsion 10 drum 2150kg. net weight rate 8.00 total USD 17200 and USD 4064.64 freight and 1.125% insurance and miss charges USD 740.70 but Assessable value made by custome departmant in bill of entry 1463930.24, bill of entry rate(66.70) Sir,how to calculate assessable value bcd 146393 cvd-201290.40 addi duty 72881.80 total duty 430995/- Rashmi : On 05 January 2016 If the design and development charges are borne by seller, will it be included in fob price? Harish: On 08 January 2016 Dear all , Anyone could you please tell me the HS code and Import duty for Rose Bud protective sleeve nets. Please Help me . svbhasker: On 17 January 2016 Dear Sharad, Customs duty is calculated as hereunder: Let assessable value be Rs 100, BCD 10%,CVD 12.5%, SAD 4% and ED cess 2%,SHE cess 1%. Step 1: BCD = 100X10%= 10 Step 2: CVD = (100+10)X 12.5%=13.75 Step 3: SAD = (100+10+13.75)X4% =4.95 Cessesses = 2%+1%=3% on (10+13.75)=23.75X3%=0.713 Total Customs duty payable BCD 10,CVD 13.75, SAD 4.95 Cesses 0.713 Total duty = 29.413 Please check up for arithmetical accuracy if any. Hope you understood the duty calculation method. samiullah: On 30 January 2016 hi this is samiullah from kadapa andhra pradesh, please explain me how to get decide the price of any good for export. for example the rice price per ton is 450 dollars, then what will be the minimum price we have to quote to the customer after calculating the customs and other charges. please explain me in detail.....iam waiting for your reply. Pankaj Jaju: On 01 February 2016 Sirs, We appreciate this service and the good work being done by you. We are importing certain Ferrous and Non-Ferrous goods at Nhava Sheva and Mormugao ports. However, irrespective of the actual cost of the goods, the Customs have their own methodology of "Loading" their own prices. When the Customs department considers the Assessable value at a far higher price then the actual martket price, it becomes expensive to us. How do the Customs calculate this "Load" rate? Is there any web-site which gives these rates? Thanks, Pankaj Jaju PRAKASH SORATHIYA: On 13 February 2016 If one can import Betel nut of HS Code: 08028010 from Vietnam to India in SEZ ( special economic zone) unit in India . and CIF Value is $2500/- PMT ( CIF) then what amount take for Assessable value for calculating duty? & what amount come for Duty forgone ?? Kindly reply on my mail id. Sanjay Kumar: On 26 February 2016 Our Parent company is in Sydney, Australia. Indian company is 100% subsidiary of the Australian Company engaged in web and software development. Now parent company want to send some used computer equipment to setup the Indian company (such as Computers, routers, switches, LCD Projectors and other bits and PCs). We need to know whether parent company can send used computer equipment to Indian company for setup and what sort of duties or custom formalities we need to follow? Please help us. Thanks Krishna: On 04 March 2016 Proviso (ii) to rule 9(2) of customs act about 1% loading for loading,unloading,handling was struck down by supreme court in Garden silk Mills case. Customs still applies the rule to arrive at assessable value , I believe. What is the correct position as on date? Neha : On 10 March 2016 Hi Surendran, Thanks a lot for putting up this useful article together. It is indeed very informative. http://howtoexportimport.com/How-is-assessable-value-calculated-by-customs-for--127.aspx I would greatly appreciate if you could help me with a few question about importing into India. The thing is, I wish to import SAMPLES of products that I wish to sell later worth USD 20 ( total price including shipping =USD 110) from Aliexpress into India. I am not sure how much customs/import would I have to pay. Please help me ! I have the following quick questions: 1.The CIF value of the 7 wallpaper rolls that I am ordering is $110 which comes out to be approx 7700 !!! Does this mean I will have to pay customs even though the value of product is only $20? 2. Since these rolls are SAMPLES , do the custom officers actually confirm some way whether or not a shipment is a SAMPLE? 3. Is there any paperwork required on my side to be shown to the custom if need arises when importing SAMPLES (letter of authorization etc.... I don't have an IEC) 4.Since the products have a value of $20, do I ask the seller to print this value in the invoice when importing as a "SAMPLE" or should they just mark the shipment as SAMPLE with no invoice/ free sample ( since per definition a SAMPLE is one that is provided free of cost) 5. what are commercial documents? would my seller on Aliexpress know it? I might be bothering you with my questions, but I have been trying to find these answers for quite sometime now. I shall be grateful to you for this timely help! Thanks again! ilyas: On 25 March 2016 How to calculation of custom duty and VAT for electronic items for import from china ? Vyankatesh S Repal : On 20 April 2016 We want guidance to calculate import tax for our product Here is some basic information about our product. So, how import tax should calculate now? What is the formula to calculate.import tax Are there any additional taxes (like excise duty) we have to pay before taking these products to our company? Please help us to improve our business Johnf289: On 22 April 2016 you may have an important weblog here! would you prefer to make some invite posts on my blog? cgdefaeacegf hyan arrow: On 23 June 2016 my motherboard from aliexpress is 77$ ---how much customs duty,if its above 2000rs i wud like to send it back,how can i do it and claim refuns..thanks Gunjan Nagda: On 21 July 2016 Is 1% landing charges exempted for procuring any goods imported by a SEZ unit from another SEZ unit. Because Bill of Entry is only document for procurement of any goods from one SEZ to another SEZ. K P Dave: On 03 August 2016 Now a days it has become very difficult to justify import values specially when it is from China. Indian customes assess values almost two to three times higher. Just I have gone through such case. It was LED solar light imported from China price was 59 USD per 100 lights. consignment was of 500 lights means 295 USD and fedex air freight 160 USD. As per standard procedure assessable value must be 455 USD. Now custom has loaded assessable value Rs. 1,20,000 justifying that this product is sold in online shop at 220/- !! Can you guide me Mr Surender if any specific method is there. bejapur shyam: On 05 October 2016 Sir iam wishing to import copper scrap for resale if I get CIF 1000 US /MTS of 20 tons does banks arrange letter of undertaking or letter of comfort should we pay any percent of the total value of the import plz explain Raman: On 23 November 2016 There is a difference of US D 2700 between Comml invoice n value mentioned in BOE How can this difference arise ? BOE value is more than invoice Vinod Amalzari : On 11 June 2017 I have read the very detailed information on Import and Export from your link published: http://howtoexportimport.com/Import/default.aspx Thank you for the detailed information. We at Intellipredikt support a DG product company to sell their products in India. We are not subsidiary of US company. We import the US product (An electronic item used in Automotive diagnostics, it is shipped as Assembled PCB) and sell the product to an end customer. The charges added before we receive product on list price in US are Frieght + Land + Customs. However customs also adding 20% on the product on FOC. We are not able to find a suitable explanation why customs is apprising the assessable value by 20%? Could you please help us to understand how we can reduce this additional cost ? please let us know if you need more inputs. Vinod Amalzari : On 17 July 2017 We import the US product (An electronic item used in Automotive diagnostics, it is shipped as Assembled PCB) and sell the product to an end customer. The charges added before we receive product on list price in US are Frieght + Land + Customs. However customs also adding 20% on the product on FOC. We are not able to find a suitable explanation why customs is apprising the assessable value by 20%?Could you please help us to understand how we can reduce this additional cost ? please let us know if you need more inputs. Balachandar N: On 27 September 2017 Dear Mr.Vinod, Pl. refer to the CBEC Circular issued on 26 Sep 2017 on Customs Valuation. In this Circular, Government has attempted to bring the spirit of Supreme Court Decision in the case of Wipro Ltd. Versus Assistant Collector reported in 2015 (319) E.L.T. 177 (S.C.). One of the point dealt in the Circular is about adopting 20% addition and scenarios also provided. Hope, this would bring in more transparency. Industries is of the view that this 20% is to do with Valuation of the price of goods. This circular provides a different view and scope and accordingly, for finalisation of imports on Commercial basis, this basis may not hold good. Regards Ankul Oriya: On 28 July 2018 Can you clear on what value we have to pay custom duty when taking a shipment on DDU basis. For example: Value of good is USD 5000 DDU charges- USD 1000 so will I have to pay customs on Goods Value or Total value (Good + DDU) Priya: On 14 December 2018 Sir, What doc require for second hand machine ? and what is "CnF Charges on Ass. Value"? Gani: On 11 May 2019 No 1% applicable as one date ,it was revoked long back as per WTO guidelines Nawale B P : On 15 May 2019 How much amount is to be added as insurance as rules say as per Insurance certificate. In that it is the policy amount or the amount of one premium chargeable or total amount paid as premium. Ganesh Salunkhe: On 22 August 2019 how to calculate CIF value for raisin from mumbai to dubai jabel ali port dubai. suppuse i target price for raisin is 150/kg is equal to 1.5lakh/ Mt in INR. so how to give buyer CIF rate? please calculate all freight and insurance rate from mumbai to dubai with all method of calculaion and also give format on my mail id. all calculation and on duty step by step calculate can you send me invoice format? Fida: On 08 October 2019 Why Importer should pay Custom Duty on Freight and Insurance. Its overhead to Importer, don't you think so? ashim: On 18 May 2020 Sir, I would like to know, when recording an import purchase, should one be taking into account the invoice value or assessed value. shashi kumar: On 28 July 2020 We have import shipment which has single invoice with multiple line items i want to arrive individual freight and Miscel amount for each line item i want to know the formula for calculating Freight and Miscel for each line items to check the Assessable value for each line items MURALIDHARAN: On 27 January 2021 Can the assessable value be taken as the purchase value for income-tax purposes since the importer pays only the invoice value to the supplier Mandeep Kumar Singh: On 08 February 2021 Thank you Mduduzi : On 21 February 2021 There is question below how can i calculate it The Polish exporter of received an inquiry from American buyer. Calculate the contract value and the price.Explain the choice of the formula. 1. Number of chairs 480, weight 12 MT, measurement 60 MTQ 2. Cost of production + profit 40 000 USD 3. Delivery formulas: EXW Bydgoszcz FCA Bydgoszcz FOB Gdynia CIF Baltimore DAP Pittsburgh DDP Pittsburgh 4. Transport data Packing the commodity – (cases) - 200 USD Loading in exporter place – 70 USD Transport Bydgoszcz – Gdynia 210 USD Loading (THC) Gdynia 120 USD Freight Gdynia – Baltimore 1680 USD Discharging (THC) Baltimore 180 USD Transport Baltimore – Pittsburg 600 USD Customs fees 10% CIF (customs value) Insurance Bydgoszcz – Gdynia 50 USD Insurance Gdynia – Baltimore 300 USD Insurance Baltimore – Pittsburgh 70 USD nilesh kumar: On 01 September 2021 Hello sir. I am Nilesh from Coimbatore. Found your how to export import blog and found many interesting answers to my unsolved questions. But I have a question related to how can we calculate the import custom duties and extra tariffs that are charged by government. I tried using ICEGATE but was unable to do so. I found that my hsn code 94035090 has a BCD of 25% and there are many certain extra tariffs such as cess and many more and I don't know if it is to be calculated or not because it also has the option to choose any exemptions provided by government. In sort how can I know my import duty and calculate the landed cost of my specific product and how can I use those exemption in ICEGATE. Your reply would be highly appreciated.Thank you. Raj.B: On 16 September 2021 Payment made in advance for import of goods. Value of goods 2285.72 USD and Freight charges paid in advance 680 USD. Total : 2965.72 USD as per invoice issued. Will the bill of entry show the freight charges also since bank will not accept the BOE if invoice value does not match with value in BOE. Jyothirmoy: On 06 December 2021 What will be the CIF charges for 20 Container Glass scrap from Kolkata India to Dhaka Bangladesh neelesh: On 16 June 2022 Hello sir. I am Nilesh from Coimbatore. Found your how to export import blog and found many interesting answers to my unsolved questions. But I have a question related to how can we calculate the import custom duties and extra tariffs that are charged by government. I tried using ICEGATE but was unable to do so. I found that my hsn code 94035090 has a BCD of 25% and there are many certain extra tariffs such as cess and many more and I don't know if it is to be calculated or not because it also has the option to choose any exemptions provided by government. In sort how can I know my import duty and calculate the landed cost of my specific product and how can I use those exemption in ICEGATE. Your reply would be highly appreciated.Thank you. ravi: On 30 June 2022 I need your help in one of the shipments that I have recently ordered. The cost of the product including shipping etc is $1699 and I agreed to pay the duty of 42 % as this was a personal shipment. Customs now has accessed the product at 185297.5 which is not the correct value of the product. We have declared everything 100 % and are not under invoicing at all as we are law abiding citizens and would like to pay our taxes and contribute to our dear motherland. Is there any way that you can help us on how to file a review ? meghna: On 16 July 2022 My name is Meghana and I have referred your website on many occasion and it clears various doubts for young learning students like me and I am very thankful to you for the same. I am writing to see if you can assist me in finding out the following information regarding India Customs Tariff. CBIC regularly publishes Tariff Notification in respect of Fixation of Tariff Value, so I had one doubt regarding the same. Question1 : how to calculate Import duty for things which have tariff values published by Government of India? For example: HS code 1511 10 00 Here Tariff Value for 1511 10 00 is “544.00 USD / 1.00 Tonne “ as per the notification and suppose its assessable Value is “540.00 USD / 1.00 Tonne”, and main duty (import duty) for it is 100% so as an importer what I need to pay for import of 100 Tonne of that substance. a) 544.00 x 100 = 54400 b) 540.00 x 100 = 54000 So A or B ?’ I.E duty will be calculated on Tariff Value or it will be calculated as usual on Assessable Value. mudasir: On 21 July 2022 To be honest with you, I am highly grateful to you for your blog which has added much to my knowledge. Even it wont be wrong to say i started Import/Export business after learning it from your blog. Sir, currently i want to know how to calculate Customs duty or Excise duty. I am planning to import rock salt from Pakistan through Amritsar-Lahore border commonly known as Atari-Wagah border. My first order will be 30tonne truck with 1600 bags of 50kg. I want to know how much will be excise duty on 1 truck. Whats its calculation? LAVNEESH THAKUR: On 15 December 2022 Please clarify the query regarding custom duty calculation method Suppose I have import goods @ Rs 100/- per kg and along with invoice supplier also give credit note/discount @ Rs 5/- per kg and credit note itself send along with invoice. Please suggest whether custom duty calculation will be done by custom authority @ Rs 100/- per kg or after set off the discount Rs 100-5=95 per kg. For your ready reference I want to share that discount column will also mention on bill of entry