ABT Ltd. provided the following details of the one of its recent transaction of import of a machine through vessel from Japan in the month of…

Computation of assessable value and basic customs duty (BCD) Particulars Amount in Japanese Yen Cost upto port of exportation 5,00,000 Add: Loading charges at the port of exportation [Includible in assessable value] 15,000 Total 5,15,000 Rate of exchange [Converted @0.65 per Japanese Yen 0.65 Rate of exchange notified by CBIC as prevalent on the date of filing of bill of entry is the applicable rate.] Particulars Amount in (₹) Total (₹) 3,34,750 Add: Commission paid to local agent of exporter [Includible in assessable value since it's not a buying commission.] 1,20,000 FOB value as per customs 4,54,750 Add: Freight charges from port of export to port of import in India [1,15,000 × 0.65] [Includible in assessable value] 74,750 Add: Actual Insurance charges [20,000 × 0.65] [Includible in assessable value] 13,000 Assessable Value 5,42,500 Add: Basic customs duty @ 15% of 5,42,500 81,375 [Rate of duty would be the rate as prevalent on the date of filing of bill of entry or entry inwards, whichever is later.] Note-Design and engineering work is includible in the assessable value only when the same is undertaken elsewhere than in India and necessary for the production of the imported goods. Thus, design and engineering work in New Delhi (or India) is not includible in assessable value.