VALUATIONS OF CUSTOM DUTY UNDER CUSTOMS ACT,

It is vital to understand the valuation of imported products when importing them into India. This will allow you to calculate your customs duty with accuracy. Customs duty depends on the import value, which is composed of several components. We will explain in this article the step-bystep process for calculating customs duty, and we'll also shed some light on the importance a proper assessment.

How do you value imported goods?

The valuation process for imported goods is the process by which the transactional value of goods are determined. Customs duty, according to the Customs Act 1962, is calculated on the Assuable Value (AV), which is determined based using various valuation techniques prescribed by law.

Components used in customs valuation

When calculating customs duties, the following elements are taken into consideration:

1. Basic Customs Duty Levied based on the value as per tariff schedule.
2. Integrated Goods & Services Tax This is a tax that is levied on the sum of Basic Customs Tax and Assessable Value.
3. Cessation & Surcharge Additional levies added to the basic customs duty.
4. SWS (Social Welfare Surcharge): An amount of the Basic Duty that is charged as a contribution towards social welfare.

Calculate Customs Duty

The formula used to determine customs valuation is as follow:

Customs Duties = Basic Customs Duties + IGST, Cess and Surcharge (if applicable).Example for Calculation:

1. Assessable values (AVs):Transaction values + landing charges (1% transaction value).
2. Basic Customs Duty
   A percentage of the Assessable Valuation.
3. Calculation of the IGST:
   IGST = "(Assessable Price + BCD) x Rate of IGST"

To receive detailed assistance from ASC Group or to speak with a professional in the field of compliance and advisory, call 9999043311.

Why is Accurate Value Important?

For imports to be smooth, penalties can be avoided, compliance is ensured, and the process is streamlined by ensuring accurate assessment of custom duty. Properly valuing ensures that all duties are calculated correctly and will save time and money.

Your Trusted Compliance Partners

Customs valuation can seem complicated. At ASC Group our team of specialists specializes on customs advice, including the valuation of imported products. Duty calculations, and compliance monitoring.Visit our website or call us on (99999043311) for tailored assistance.Understanding the nuances Customs valuation on imported goods You can ensure smooth imports. Rely upon ASC Group You can rely on expert guidance at each stage.