Sage-Tips

How do you find the assessable value?

Assessable value = Cost + Insurance + Freight+ Handling charges. to calculate the AV, You need to calculate the CIF value.

How is the assessable value determined under the Customs Act?

Method of calculating Assessable Value under import of goods in India. In simple terms, 1\% added to CIF value of imports is assessable value. You have imported goods worth USD 1000.00 FOB value. If any design and development charges involved, the same cost is added – say USD 100.00.

Where the insurance amount is not available for ascertaining the assessable value for customs duty the percentage of FOB value to be taken is?

– The actual cost of insurance on goods till the place of importation must be added. – Where the actual cost of insurance is not ascertainable,1.125\% of FOB price must be added. – The transaction value and assessable value must be expressed in INR (i.e., Indian Rupees).

What is the meaning of assessable value?

Assessable value is a very broad term and complicated as well because as per literal meaning it means the value upon which various duties and taxes are levied . However, if you check my link, the Asessable value is actually calculated based on varoius factors/valuation rules mentioned in the Excise Act/Rules.

What is assessable value in GST?

Assessable value is the value that is used for the calculation of tax. Under Customs Act, assessable value includes the cost of goods sold, transportation cost up to the location of the buyer and insurance.

How do you determine the value of imported goods?

The 6 Methods of Customs Valuation

1. Method 1: Transaction value.
2. Method 2: Transaction value of identical goods.
3. Method 3: Transaction value of similar goods.
4. Method 4: Deductive method.
5. Method 5: Computed method.
6. Method 6: Fall-back method.

How do you calculate customs duty?

1. Rated or Specific – 10 cents per square meter or 3 cents per dozen.
2. Ad Valorem (Fixed percentages of the value) – 10\% of the value or 25\% of the value.
3. Compond (combination of rated and ad valorum duties applicable to goods mentioned in the same tariff heading) – 20\% + 8 cents per kg or 50 cents per square meter less 20\%

How do you calculate fob?

FOB Value = Ex-Factory Price + Other Costs (b) Other Costs in the calculation of the FOB value shall refer to the costs incurred in placing the goods in the ship for export, including but not limited to, domestic transport costs, storage and warehousing, port handling, brokerage fees, service charges, et cetera.

How do you calculate landing cost of imported goods?

FOB: The Import duty is charged on the “Free On Board” value of the products. i.e. duty is charged on the FOB value of goods (on the currency of the importing country)….So the final landed cost of goods imported into country:

1. FOB $13,000.
2. + Seafreight $2600.
3. + All local import costs $1500.
4. + 5\% import duty $650.