Freight on Imports

[P Ovhal]

e.g. > We are a Import of inputs for Manufacturing activity at our factory. Price = Rs.10000/- . Actual freight is given on Bill of Entry = Rs. 2500 but Ass. Value Calculated (Price 10000+Freight 2000 (20% of price)+Insurance 113+Ladding 121)
Q > What concept used for freight Calculation.

Please explain

PRO

AI Summary

Understanding Freight Calculation for Imported Manufacturing Inputs: Actual Freight or 20% of FOB, Plus Loading/Unloading Costs A discussion on a forum addresses the calculation of freight for imported manufacturing inputs. The initial query involves understanding the concept used for freight calculation, with a specific example provided. Two responses clarify that freight is calculated based on either the actual freight or 20% of the Free on Board (FOB) value, whichever is lower. Additionally, loading/unloading and insurance costs are calculated as percentages of the FOB value. The responses suggest that relevant freight documentation was likely not presented during customs duty assessment, leading to the query.