Rule 4 - Transaction value

Transaction value principle: customs accepts declared price if sale is arm's length and adjustments under valuation rules apply.

The rule sets transaction value as the primary customs valuation method: the price actually paid or payable for goods sold for export to India, adjusted under the valuation adjustment provisions. Acceptance requires ordinary competitive sale conditions, absence of abnormal or special discounts, objective data for adjustments, limited permissible restrictions on use or disposition, no unadjusted proceeds returning to the seller, and normally unrelated buyer and seller; where related parties transact, the declared value is acceptable only if relationship did not influence price or it closely approximates contemporaneous comparable or deductive or computed values with appropriate adjustments.