Valuation related to import

[MK Singh]

My query is one of the importer imported goods i.e automated data processing machine with assessable value is ₹ 1 Cr and he paid Zero BCD and 18 % IGST on the goods. But on the packing list the MRP is written as 2.1 Cr during the import.

My question is whether there is any violation of Customs Valuation Rule in this transaction?

Whether there is any rule differentiating between transaction value and MRP?

The imported goods to ready to use goods. Please guide.

[Shilpi Jain]

Under Customs, where the transaction is not between related parties or even if related and the price has not been influenced, the transaction value can be adopted.

So IGST need not be paid on MRP

[Raghunandhaanan rvi]

Sir

If the Maximum Retail Price is wrongly affixed on the retail packaging and goods are still under customs control, you may request customs to allow you to relabel the packages with the correct MRP in the customs bonded warehouse.

AI Summary

Transaction value governs customs valuation; tax is assessed on the uninfluenced invoice price, not on MRP. Where the buyer and seller are not related or the price is not influenced, customs permits adoption of the Transaction Value as the assessable value; IGST is payable on that transaction value rather than on a higher printed Maximum Retail Price. If MRP is wrongly affixed while goods remain under customs control, importers may request permission to relabel packages in the customs bonded warehouse.