Customs duty Assessement

[MUNIRAJ SRINIVASAN]

Dear sir, my client has importing material from china , they are giving 20 percent discount on invoice value as per customs duty how we have to pay (100-20) 80 whether 80 percent we have to pay or 100 of invoice value under what provision they are assessing the customs duty on import materails under which provision they are fixing the duty

[YAGAY andSUN]

Dear Muniraj,

In our opinion, you need to pay the customs duty on 80 percent on the goods as the exporter is providing you discount of 20 percent on the invoice value.

Please check Rule 3 of the Customs Valuation (Determination of Price of imported Goods) Rules, 2007 in this regard.

Team YAGAY & SUN

(Indirect Tax Consultants)

AI Summary

Customs valuation: invoice discounts can reduce the assessable transaction value for import duty under valuation rules. Customs duty should be computed on the invoiced value net of the exporter's discount, so the discounted invoice forms the basis of assessment; refer to Rule 3 of the Customs Valuation (Determination of Price of imported Goods) Rules, 2007 for valuation treatment of such discounts and effect on transaction value for duty assessment.