Customs Valuation (Determination of Value of Imported

Understanding the customs valuation for imported goods, is essential to accurately calculate customs duty when importing into India. The customs duties are based upon the value and composition of imported goods. In this article we will go through the steps of calculating customs and the importance proper valuation.

What is Import Goods Value?

The process of determining the value of imported goods involves calculating the transaction price of goods. Customs duties are calculated based on the Assessable Value of the goods.

Components and Customs Valuation

When calculating the duty, you must take into account the following:

  1. Basic Customs Duty Levied according to the tariff schedule, this is the basic customs duty.
  2. Integrated Goods & Services Tax IGST: This tax is based on the summation between the assessable value of goods and services and the Basic Customs Duties.
  3. Cess-and-surcharge: Additional taxes applied to the base customs duty.
  4. The Social Welfare Surcharge is a percentage of Basic Customs Duty that goes to support social welfare programmes.

How to Calculate Customs Duty

The formula is as follows.

Customs Duty = Basic Tax + IGST + Cess + surcharge (if applicable).

Calculation Example:

  1. Assessable Valuation (AV):TransactionValue + Landing Charges (1 % of transaction value)
  2. Basic Customs Duty
    Percentage of Assessable Value
  3. Calculate IGST
    IGST = IGST Rate x (Assessable Value - BCD).

For more information, please contact ASC Group, an expert in compliance and advice services.

Why is Accurate Valuation important?

A accurate valuation of custom duties will help you avoid penalties, comply with the law, and streamline your import process. A proper valuation ensures that the correct duties are calculated and saves both time as well as money.

ASC Group

The complexity of customs value can be overwhelming. Our team of customs experts at ASC Group is specialized in a wide range of services including import valuation duty calculations, compliance management, and duty calculation.

To receive a tailored service, contact us today by calling (9999043311) or visiting our website.

By understanding the subtleties of Customs valuation for imported goods You can make sure that imports are hassle-free. Rely on ASC Group Get expert advice at every step.

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