Product 'Hexa' was imported by Mr. Narayan by air. The details of the import transaction are as follows: Particulars US $ Price of 'Hexa' at…

Computation of assessable value of product 'Hexa' Particulars Amount Ex-factory price of the goods 'Hexa' 8,000 US $ Freight from factory of the exporter to load airport (airport in the country of exporter) 500 US $ Loading and handling charges at the load airport 500 US $ Freight from load airport to the airport of importation in India 4,000 US $ Total cost of transport, loading and handling charges associated with the delivery of the imported goods to the place of importation 5,000 US $ Add: Cost of transport, loading, unloading and handling charges associated with the delivery of the imported goods to the place of importation (restricted to 20% of FOB value) [Note 1] 1,800 US $ Insurance (actual) 2,000 US $ CIF for customs purpose 11,800 US $ Value for customs purpose 11,800 US $ Exchange rate as notified by CBIC [Note 2] 70 per US $ Assessable value (70x 11,800 US $) 8,26,000 Add: Basic customs duty @ 10% [Note 3] 82,600 Add: SWS @ 10% 8,260 Value for the purpose of levying integrated tax [Note 4] 9,16,860 Add: Integrated tax @ 12% 1,10,023.20 Total duty & tax payable (rounded off) 2,00,883 Notes: (1) In the case of goods imported by air, the cost of transport, loading, unloading and handling charges associated with the delivery of the imported goods to the place of importation shall not exceed 20% of the FOB value of the goods [Fifth proviso to rule 10(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007]. FOB value in this case is the ex-factory price of the goods (8,000 US $) plus the cost of transport from factory to load airport (500 US $) plus loading and handling charges at the load airport (500 US $) which is 9,000 US $. (2) Rate of exchange as notified by CBIC on the date on which bill of entry is presented under section 46 of the Customs Act, 1962 is to be considered [Clause (a) of the explanation to section 14 of the Customs Act, 1962]. (3) Section 15 of the Customs Act, 1962 provides that rate of duty shall be the rate in force on the date of presentation of bill of entry or the rate in force on the date of arrival of aircraft, whichever is later. (4) Integrated tax is levied on the sum total of the assessable value of the imported goods and customs duties [Section 3(8) of the Customs Tariff Act, 1962]. Social Welfare Surcharge (SWS) leviable on integrated tax has been exempted.