Customs valuation excludes technical documentation payments absent a direct nexus with the imported goods.

Lump sum payments for technical documentation and drawings are not includible in customs assessable value unless they are shown to relate to the imported goods. The agreement in question linked the technical know-how and documentation to manufacture of licensed products in India, not to the imported goods themselves. As no contractual clause established the required nexus with the imported goods, the payment could not be added under Rule 9(1)(c) of the Customs Valuation Rules while determining transaction value under Rule 4. The lump sum amount was therefore not required to be included in the declared price.

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Issues: Whether the lump sum payment made towards technical documentation and drawings was liable to be added to the declared price under Rule 9(1)(c) of the Customs Valuation Rules while determining the transaction value under Rule 4.

Analysis: The agreement clauses showed that the technical know-how and documentation were connected with the manufacture of the licensed products in India, and not with the imported goods themselves. For a payment to be added under Rule 9(1)(c), it must be shown to be in relation to the imported goods. No clause in the agreements established such a link between the payment and the imported goods.

Conclusion: The payment of USD 2,25,000 was not includible in the assessable value and was not required to be added to the price.

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