Custom duty on freight and insurance

[SAMBATH KUMAR]

This is regarding debonding of Capital Goods (computer systems) after five yeas. As per the new guidelines received from Customs Mumbai, we need to pay custom duty on freight and insurance of the computer systems though the computer systems are having zero value after five years depreciation.

AI Summary

Customs Duty on Freight and Insurance for Depreciated Computer Systems Deemed Incorrect Due to Lack of Separate Provision A query was raised about the requirement to pay customs duty on freight and insurance for computer systems being debonded after five years, despite their zero value due to depreciation. The response clarified that there is no separate provision for customs duty on freight and insurance. These charges are included in the total value of the imported items, and depreciation applies to this total value. Therefore, the action by Customs Mumbai to impose such a duty is deemed incorrect.