Customs valuation excludes reproduction royalty for imported clumps in India under Rule 10(1)(c).

Royalty paid for the right to reproduce imported clumps in India was held outside assessable value under Rule 10(1)(c) of the Customs Valuation Rules, 2007. The exclusion was applied on the basis that it covers charges for the right to reproduce imported goods in the country of importation, and does not depend on whether the supplier and importer are related. Interpretative notes and a World Customs Organization clarification were relied on to give the phrase a broad meaning, including animal or plant species. A prior Tribunal ruling on similar reproduction royalty was followed, and the royalty was therefore not includible.

---

---

Issues: Whether royalty paid for the right to reproduce imported clumps in India is includible in the assessable value of the imported goods under Rule 10(1)(c) of the Customs Valuation Rules, 2007.

Analysis: The exclusion in Rule 10(1)(c) applies to charges for the right to reproduce imported goods in the country of importation and does not turn on whether the supplier and importer are related. The interpretative notes and the World Customs Organization clarification support a broad meaning of the right to reproduce, extending to animal or plant species. A prior Tribunal decision on similar royalty paid for reproduction in India was also followed.

Conclusion: The royalty paid for reproduction of the imported clumps in India was not includible in their assessable value, and the issue was decided in favour of the assessee.

---