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

(c) Computation of assessable value of product 'PKY' Particulars Amount Ex-factory price of the goods 8,500 US $ Freight from factory of the exporter to load airport (airport in the country of exporter) 250 US $ Loading and handling charges at the load airport 250 US $ Freight from load airport to the airport of importation in India 4,500 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 12,300 US $ Value for customs purpose 12,300 US $ Exchange rate as per CBIC [Note 2] 70 per US $ Assessable value (70x 12,300 US $) 8,61,000 Add: Basic customs duty @ 10% [Note 3] 86,100 Add: Social Welfare Surcharge (SWS) @ 10% 8,610 Value for the purpose of levying integrated tax [Note 4] 9,55,710 Add: Integrated tax @ 12% 1,14,685.2 Total duty & tax payable (rounded off) 2,09,395 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. FOB value in this case is the ex-factory price of the goods (8,500 US $) plus the cost of transport from factory to load airport (250 US $) plus loading and handling charges at the load airport (250 US $) which is 9,000 US $. (2) Rate of exchange determined by CBIC is to be considered (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. SWS leviable on integrated tax have been exempted.