Customs Act 1962
Levy of, and Exemption from,
Customs Duties
Section
14: Valuation of goods (Relevant
Rules) (Relevant
Updates)
(1) For the purposes of the Customs Tariff Act,
1975(51 of 1975), or any other law for the time being in force, the
value
of the
imported goods
and
export goods
shall be the transaction value of such
goods
,
that is to say, the price actually paid or payable for the goods when sold for
export
to
India
for delivery at the time and place of importation, or as the
case may be, for export from India for delivery at the time and place of
exportation, where the buyer and seller of the goods are not related and price
is the sole consideration for the sale subject to such other conditions as may
be specified in the rules made in this behalf:
Provided
that such transaction value in the case of imported goods shall include, in
addition to the price as aforesaid, any amount paid or payable for
costs and services, including commissions and brokerage, engineering, design
work, royalties and licence fees, costs of transportation to the place of
importation, insurance, loading, unloading and handling charges to the extent
and in the manner specified in the rules made in this behalf:
Provided
further that the rules made in this behalf may provide for, -
(i)
the circumstances in which the buyer and the seller shall be deemed to be
related;
(ii)
the manner of determination of value in respect of goods when there is no sale,
or the buyer and the seller are related, or price is not the sole consideration
for the sale or in any other case;
(iii)
the manner of acceptance or rejection of value declared by the
importer
or
exporter
, as the case may be, where the
proper officer
has reason to doubt the
truth or accuracy of such value, and determination of value for the purposes of
this section:1[(iv)
the additional obligations of the importer in respect of any class of imported
goods and the checks to be exercised, including the circumstances and manner of
exercising thereof, as the
Board
may specify, where, the Board has reason to
believe that the value of such goods may not be declared truthfully or
accurately, having regard to the trend of declared value of such goods or any
other relevant criteria:]
Provided
also that such price shall be calculated with Refer:-ence to the rate of exchange
as in force on the date on which a
bill of entry
is presented under
section 46, or a
shipping bill
of export, as the case may be, is presented under
section 50.
(2)
Not with standing anything contained in sub-section (i), if the Board is satisfied
that it is necessary or expedient so to do, it may, by notification in the
Official Gazette, fix
tariff values
for any class of imported goods or export
goods, having regard to the trend of value of such or like
goods
, and where any
such tariff values are fixed, the duty shall be chargeable with Reference to
such tariff value.
Explanation.--For
the purposes of this section--
(a)
"rate of exchange" means the rate of exchange--
(i)
determined by the Board, or
(ii)
ascertained in such manner as the Board may direct, for the conversion of Indian
currency into foreign currency or foreign currency into Indian currency;
(b)
"foreign currency" and "Indian currency" have the meanings
respectively assigned to them in clause (m) and clause (q) of
section 2 of the
Foreign Exchange Management Act, 1999(42 of 1999).
1. Inserted Vide
Section 89 of the Finance Act 2022