TaxTMI 
TaxTMI 
Transaction value of imported auto components as OE Parts and Service Parts - Regarding
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....Parts - Regarding. A reference was received in the Board from the Commissioner of Customs, Chennai to consider the issue regarding the acceptance of dual pricing on import of auto components as original equipment parts and service parts, since both are identical in all respects, and hence, are covered under the definition of identical goods as per Rule 2(1)(c) of Customs Valuation Rules, 1988. 2....
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....anufacturer supplied components of his products to a co-manufacturer, who buys the components for use in further manufacturing process, at a price lower than what he charges to his distributors or dealers who buy the components for resale as spare parts or replacements. This circular was issued under the earlier "Deemed Value" method, which existed prior to the formulation of Customs Valuation Rul....
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....ule 2(1)(c) of CVR, 1988, they are independent transactions in view of the commercial considerations as discussed above. 4. The issue has been examined. The decision of the Board in this regard is as follows: "It was decided that in view of the introduction of the 'transaction value' concept on the Customs side, dual prices in respect of components imported as OE parts and as spare parts had to ....
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....d party transactions needs to be looked into, to see whether this is a case of 'tied in' sales and examine whether the price charged for original equipment parts has been reduced by loading the same in the price of payments not related to imported goods. The Custom Houses should investigate implications of transfer pricing also and see whether declared price is not lesser than the intrinsic value ....