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

[YAGAY and SUN]

Dear Sir, Freight is calculated as per following formula:-

Actual freight or 20% of the FOB Value of the goods which ever is lower.

 

Regards,

Pradeep Khatri

[Alok Kumar]

Dear Sir,

Considering the existing customs valuation rules , the value of the imported goods will done in the following manner in your case :-

1) where the cost of freight/ transport is not ascertainable /(known) such cost will be taken as 20% on the FOB value of the goods.

2) simialry  loading /unloading/handling charges will be 1% on the FOB VALUE of the goods

3) and  again in the similar circumstances /position the cost of insurance shall be taken as 1.125% of the FOB VALUE of the goods.

it appears that the relevat documents relating to freight element was not presented before the customs assessing authorities at the time of calulation of the customs duty.

thanks,

 

alok kumar

AI Summary

Freight for customs valuation: actual freight or prescribed fraction of FOB applies, affecting assessable value and ancillary charges.
When transport and related costs are undocumented for customs valuation, freight is taken as either the actual freight or, if not ascertainable, a prescribed fraction of the FOB value (with the lower amount applied); loading/unloading/handling and insurance are also estimated as specific fractions of FOB unless relevant documents are presented to the customs assessing authority.