value addtion in export value

[Arun Aggarwal]

Sir

we are an exporter of jewellery in the the past paying excise duty on the bullion purchased

for the value addtion the custom dept issued a show cause adding excise duty paid and subsequently refunded in the assesbale in the value for export .

pls guide me for the correct way for calculating the cost for the value addtion, and to reply

thanks

[Saurabh Goel]

Hi Arun, Please refer to FTP Chapter 4 followed by Handbook of Procedures (4.60) issued by DGFT. It prescribes the calculation formula as well as rate of Value Addition. It is a pre-requisite when you plan to export jewellery.

AI Summary

Value addition calculation in jewellery exports requires applying the prescribed formula and rate under export procedures. Exporter of jewellery questioned inclusion of excise duty paid and refunded on bullion in the assessable value for calculating value addition; customs treated the refunded excise as part of assessable value. Exporters must apply the prescribed calculation formula and specified rate of value addition set out in the export policy and procedural handbook when determining value addition for jewellery exports.