I.

Deductive value method (Rule7)

When the goods cannot be valued under the above three methods, Deductive
value as per Rule 7 is used to value the imported goods. If the imported goods being
valued are sold in India in the same condition as they are imported. The value of goods
shall be based on the unit price at which the Imported goods or identical or similar
imported goods are sold in the greatest aggregate quantity to persons who are not related
to the seller in India. Form the unit price following deductions shall be made:
(a) The usual Commission
(b) The usual cost of transport, insurance etc.
(c) Customs duties and taxes payable on account of import or sale of the goods.
II. Computed value method (Rule7A)
This method is not incorporated in the customs Rules 1988, thereby it is not a permissible
method of valuation. Computed value is the sum of the cost or value of materials,
fabrication or other processing, profit and general expenses, cost of transport loading and
unloading and accost of insurance.
III. Residual method (Rule8)
This is the last method of valuation and known as the residual method. This method is
used when all the above methods of valuation of goods fail to arrive at the valuation
goods. The value of the imported goods under this method should be based on previously
determined customs values to the extent possible. While valuing goods the following
shall not to taken as base: