Py USE GD ORS ae ea eee ene as (Free on Board) ‘Add: Charges for cosis and services as per Rule 10(1) (Excluding charges for Post- importation Activities) FOB ae per Customs ‘Ada: The following adjustments {(a) andib)] under Rule 1012) :, (@) Actual cost of transport, loading, unloading and handing chiarges associated ‘uth the delivery of the imported goods to the place of importation . (Incase of air t cannot exceed 20% of custome FOB value of goods) {iret ascertainable ~ 20% of the custome FOB value of goods. {i case custome FOB value is also not ascertainable, then it will be 20% of _{eustome FOB value + Cost of insurance} (bj Actual cost of insurance (If not ascertainable - 1.125% of the customs FOB talus of goods In case customs FOB value Is aiso not escertainable then i Wile 1 1299 of (Customs FOS value + Cost of transport, loading, unloading ‘nd hhanating charges} * oe 2 CIF Value (Customs FOB valus + Cost of transport + Cost of insurance) Seing assessable value for the purpose of caleulating duties of custom wt litustration 2 : 7 Lid. imported 2 machine at an invoice price ributable to post-importaifon activities to be sapere eee rhe su ji ee activties to be carte on Inclidies © 200,000 al worth €5,00,000 fo the sole forthe manutacture of the cass noch ae ee ee Mlustration 3: Compute thie assessabie value from the following information: (FOB value of machine - $ 10,000: @) Airtreight, oading, unloading andhandling charges associated with the delivery ofthe Imported ‘goods to the place of importation - $ 2,500; (i) Cost of insurance : § 500; i : {iUnioading and handling charges at the place of importation - 50,000; (v) Exchange rate as notified by CBIC 1$ = 65. : Mlustration 4: r Compute thé assessable value from the following information: () FOB value of machine - Not ascertainable. (i) FOB value of machine and air freight, loading, unloading and hancling charges associated wit! the delivery of the impartad goods to the place of importation - US $ 15,000. i) Cost of insurance : Not ascertainable {iv) Unloading and handling charges at the place of importation - $0,000 (W) Exchange rete as notified by CBIC 1 $= 65eee Mustration ‘Compute the assessable value and custom duty payable from the folloning information : Date of import 20th February 18. (0. FOB valve of machine - 8,000 UK Pounds 4H) Freight paid (air) - 2,500 UK Pounds formate (ti) Design and development charges paid in UK - 500 UK Pounds i. (i) Commission payable to local agent @ 2% of FOB in Indian eed eae ey 7 emer 24102018 (Rate BCD 10%, Exchange rate as notfied by CBIC 100 per (09 Date Of arrival of sireraR - 20-10.2018 (Rate BCD 16%, Exchange rate as notified by CBIC E95 per UK Pound) : (vil) Integrated tax leviable under Section 3(7) of CTA, 1975 - @ 12% (ull Insurance charges actually paid but details not available. lustration 6: puts tho cistoms duty payable trom the following data: inery imported from USA by air on 01-08-18 + US$ 10,050 ‘Accesso lied ries worth US $ 2,000 compulsorily supplies 4 ‘with machine, price is included In price of machine Pee Ar freight at Insurance > tf Local agent's commission ales Sane aa 10% ad valorem ‘Custome duly on machine ox as Customs duty on accessory . O% a valorem integrated tax a GST Compensation cass ue SWS : a 2 tender the seeateh culare gen alow, Sn out th assessable vale of he inpotea goods Customs Act 1962 Cost ne at the factory ofthe exporter Oo cnaages from the factory of exporter to the agar sions {Gi Hanging charges paid for loading the machine in the {suring commission paid by the importer —_ (0) Freight chorges rom exporting country ton (iepohange rate tobe considered :15 = €7 ‘Actual insurance charges paid are not escertainabie, 1,000. 10,000 Mustration Foreign Trade International Lid.has imported én’ machine from England. It has given the following particulars : 3 (Price of machine : 8,000 UK Pounds (8) Freight paid (Air) : 2,500 UK Pounds (69 Deston and development charges pald in UK Commission payable to local agent of 500 UK ounds: (iv) Exporier @ 2% of ptice of machine in indian Rupees () Date of fad) | Cnty '24 10.20XX (Rate BCD 10%; Exchange rato ae notified by CBICE 100 per UK Pound) : (Wt) Date of artwval of alreraft : 20.10.20XX (Rate of BCD 20%: Exchange rate asnotified by CBIC 98 per UK Pound) Intograted tax leviable under section 3(7) of the Customs Tarif Act, 1975 is 12%. (will) Insurance charges have been actually paid but deiails are no! available, Gompute ihe total custome duty and integrated tax payable by Foreigh Trade International Ltd. Note: Ignore GST Compensation Cass. Wi