Customs valuation excludes demurrage charges from assessable value of imported goods under the valuation rules.

Customs valuation under Section 14 of the Customs Act, 1962 and Rule 10(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 does not permit inclusion of demurrage charges in the assessable value of imported goods. The Tribunal followed existing judicial authority and held that the explanation inserted to Rule 10(2), so far as it sought to include demurrage charges, could not support the department's valuation approach. The operative effect is that demurrage charges are excluded from assessable value for customs valuation purposes.

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Issues: Whether demurrage charges could be included in the assessable value of imported goods for customs valuation.

Analysis: The issue was treated as covered by earlier authority. The valuation scheme under Section 14 of the Customs Act, 1962 and Rule 10(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 was read as not permitting inclusion of demurrage charges in the assessable value. The Tribunal followed the existing judicial view that the explanation inserted to Rule 10(2), to the extent it sought to include demurrage charges, could not sustain the customs valuation adopted by the department.

Conclusion: Demurrage charges were not includible in the assessable value of the imported goods, and the appeal succeeded.

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