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.

[Surender Gupta]

There is no such provision for payment of customs duty on freight and insurance separately. Freight and insurance charges are included in the value of imported items (i.e. computers) itself and depreciation is allowed on the total value. Therefore, action of the customs Mumbai appears as incorrect.

AI Summary

Customs valuation: freight and insurance form part of import value so no separate duty chargeable on them. There is no separate statutory provision to charge customs duty exclusively on freight and insurance when debonding imported capital goods; freight and insurance form part of the assessable import value and depreciation applies to the total value, so separate levy on those heads at debonding is incorrect.