Annexure-1 - METHOD OF CALCULATION FOR THE AIFTA CONTENT - (Rule 5)
Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India) Rules, 2009
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AIFTA content calculation defines FOB and ex factory bases and component costs under preferential rules. Calculation for AIFTA content sets FOB price as Ex Factory Price plus Other Costs incurred to place goods on board for export. Ex Factory Price equals Production Cost plus Profit. Production Cost comprises Cost of Raw Materials (including freight and insurance), Labour Cost (wages, remuneration and employee benefits) and Overhead Cost, with Overhead covering property and plant expenses, leasing and interest, insurance, utilities, R&D, tooling and depreciation, royalties or licences, inspection/testing, in factory storage/handling, waste disposal and port/clearance charges and import duties relating to raw materials.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
AIFTA content calculation defines FOB and ex factory bases and component costs under preferential rules.
Calculation for AIFTA content sets FOB price as Ex Factory Price plus Other Costs incurred to place goods on board for export. Ex Factory Price equals Production Cost plus Profit. Production Cost comprises Cost of Raw Materials (including freight and insurance), Labour Cost (wages, remuneration and employee benefits) and Overhead Cost, with Overhead covering property and plant expenses, leasing and interest, insurance, utilities, R&D, tooling and depreciation, royalties or licences, inspection/testing, in factory storage/handling, waste disposal and port/clearance charges and import duties relating to raw materials.
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