Asseble value calculation process for Trading components at Custmos clearing

[Guest]

we are going to  import  Engineering material (8431  ......) through trading mode my query is

(1) Whether declaring MRP IS mandotory for this component if so what is the procedure for the same

(2) If it is not mandotory how customs will arrive the assesble value for duty calculation

thanks

[Radha Arun]

I gather that the goods are being imported for re-sale ("trading mode"). But we still need to know whether they are going to be sold in wholesale or retail. DGFT Policy Circular 38(RE-2000)/1997-2002 dated 22.1.2001 clarified that MRP labeling is required only when the imported goods are intended for retail sale. 

Procedure for declaring MRP: label on the package. 

If MRP is not applicable, the customs will value the goods on the basis of transaction price.

[Guest]

Thank you very much for the valuebel input.

Further would seek your guidence with regard to process and guidelines for arriving asseble value calculation for the items which were going to be cleared through trading mode and which are not comeing under the perview of MRP . As iwe heard that if we trading commdities which were not coming under MRP were asseses @230% of the transaction value for arriviing Asseble value is it correct??? kindly clarifie.

 

 

[Radha Arun]

No, no, nothing is assessed at 230% of transaction value. The transaction value itself is the assessable value, and the customs duty is worked out according to that. If transaction price is  Rs100, and customs duty is 10%, then customs duty will be Rs 10.

AI Summary

Maximum Retail Price labeling requirement applies only to retail goods; otherwise customs values imports at transaction price. MRP labeling is required only for goods intended for retail sale and must be shown on the package. For trading imports not subject to MRP, customs uses the declared transaction value as the assessable value for duty calculation; there is no automatic fixed multiple uplift of the transaction value.