Determine the assessable value of the machinery imported and compute the amount of total custom duty and integrated tax payable by ABC Electronics…

(a) Assessable Value of the machinery imported by ABC Electronics Ltd. and total customs duty payable by it Particulars Amount ($) Cost of the machine 40,000 Add: Transportation charges from the factory of exporter to the port for shipment & handling charges for loading of machine in the ship [Includible in the assessable value]. 1,000 Add: Licence fee relating to imported goods payable by the buyer as a condition of sale [10% of 40,000 (Price of machine)] [Includible in the assessable value] 4,000 Total 45,000 Amount (₹) Value in Indian currency [$45,000 x 82] [The relevant date for rate of exchange is the date on which the bill of entry is presented for warehousing.] 36,90,000 Commission paid to local agent of exporter [Includible in the assessable value since it is not buying commission] 1,50,000 Customs FOB Value 38,40,000 Insurance [1.125% of FOB Value] [If insurance cost is not ascertainable, the same shall be added @1.125% of FOB value of the goods] 43,200 Freight Charges [$4,000 X 82] [Includible in the assessable value] 3,28,000 Lighterage Charges [Includible in the assessable value] 28,800 Unloading and handling charges paid at the Indian Port [Only charges incurred for delivery of goods "to" the place of importation are includible in the assessable value] Nil Warehouse Charges. [Not includible, since only charges incurred for delivery of goods "to" the place of importation are includible in the assessable value] Nil Assessable value (AV) 42,40,000 Basic Custom Duty (BCD) [15% of AV] [a] 6,36,000 [Rate of duty is the rate prevalent on the date of presentation of bill of entry or the rate prevalent on the date of entry inwards, whichever is later] Social Welfare surcharge @10% of BCD [b] 63,600 Total [(a) +(b)] 6,99,600 Integrated tax @18% of 49,39,600 [c] 8,89,128 Total custom duty and integrated tax payable 15,88,728 [(a) + (b) + (c)]