if percentage of high sea sale is high.

[prem abhishek tayal]

dear sir,

i want to ask you my friend is importing knitting machine from china. and he sold the machine on high sea sale basis against epcg, by adding 50-60% from actual value. the custom officer is not allowing that coz of high percentage. so is there any thing written in custom rules that he cant do this. i think minimum is 2%. so what can he do. and what type of action they can do.

AI Summary

Customs Clarifies High Sea Sale Valuation: Assessable Value Is Final Importer Price, Not Original Cost Per CBEC Circular 32/2004-Cus. A participant inquired about the customs implications of selling a knitting machine imported from China on a high sea sale basis, with a markup of 50-60% over the original value. The customs officer objected due to the high markup. The response clarified that in high sea sales, the assessable value for customs is the price at which the goods are sold to the final importer, not the original purchase price. The valuation should be based on the last sale price, as per CBEC Circular No. 32/2004-Cus. High sea sales agreements must be on stamp paper and dated after the ship's journey begins.