Reassessment of Bill of Entry

[Shyam Naik]

Dear Experts,

We have imported coal. The Bill of Entry was filed and assessed based on transaction value. Later on we have paid demurrage to the supplier.

It appears that we need to pay duty on the demurrage, being additional consideration.

Whether, the customs shall issue a revised Bill of Entry?

Whether we need to submit the revised Bill of Entry to the Bank(Authorised Dealer) towards proof of import at the time of remittance of amount of demurrage?

Thank You.

Best Regards,

Shyam

[YAGAY and SUN]

Whether this demurrage was paid against ship demurrage or port demurrage, if it is ship demirrage then no need to include it in the customs' assessable value, otherwise it is required to be incorporated in the assessable value of Customs.

AI Summary

Assessable value: include port demurrage as part of imported goods' value; ship demurrage is excluded.
Post-import demurrage payments may constitute additional consideration for customs valuation. The advisory distinguishes that ship demurrage is not includable in the assessable value, but non-ship demurrage (such as port demurrage) must be incorporated into the customs assessable value. The response addresses valuation only and does not expressly decide whether a revised Bill of Entry should be issued or presented to the authorised dealer bank as proof of import.