CUSTOMS DUTY AND GST-1

8. An Indian dealer imported 30 machines from USA @200 dollars per machine.
However, the following expenses are not included in it:

a) Packing charges $10 per machine

b) Transportation charges to Indian port $100
c) Transit insurance premium $30
d) Brokerage (excluding buying commission) $60
Compute assessable value to determine customs duty. Exchange rate is 1$ = Rs 74
9. An importer has imported machine at invoice price of 16000 dollars. From the
following particulars determine assessable value and compute total customs duty
payable.

1. Packing charges $800

2. Transport charges by air $ 4800
3. Insurance premium $ 1050
4. Transportation charges from Indian airport to godown Rs 8000
5. Commission paid to broker of exporter who arranged the deal $ 190
6. Exchange rate notified by the Board $1 = Rs 74

10. From the following particulars calculate the total customs duty payable by Mr. X
(BCD @ 15%, IGST @ 18%).

1. Cost of machinery imported 5500 $

2. Cost of transportation from exporters place till the port 100 $
3. Cost of transportation incurred by importer till godown Rs 5000
4. Insurance premium paid by exporter 55 $
5. Packing charges 12 $
6. Design and development charges paid in India Rs 70,000
7. Freight charges 20$
8. Actual landing charges paid at the place of importation Rs. 15,000

Exchange rate fixed by RBI 1 $ = Rs. 69.75

Exchange rate fixed by CBIC 1 $ = Rs. 70.55

11. Nayana group of company imported a machine by air freight from UK. Bill of
entry presented on 10-05-2021 and entry inward granted on 05-06-2021.
Particulars UK Pound
Ex-factory price 25,000
Transportation charges up to port of exporter's country 1000
Insurance up to port of exporter's country 100

Aashritha P
VVPGC
 CUSTOMS DUTY AND GST-1

Buying commission paid by buyer to its agent in UK 250

Material and components supplied in UK by the buyer at free of 2500
cost
Engineering and development charges paid to firm in UK 1000
Packaging charges (non-returnable) 200
Packaging charges (returnable) 500
License fees the buyers required to pay in UK 1200
Freight charges paid 3000
Insurance paid but details not available ****
Lighterage charges paid by importer port of importation Rs. 20,000
Transport of goods from port of entry to inland container depot Rs. 10,000
Cost of post shipment expenditure 8000

Exchange rates are as follows:

1. Rate of exchange announced by CBIC as on 10/05/2021 is 1 US $ = 75

2. As on 05/06/2021 is 1 US $ = 72
3. Rate of exchange announced by RBI as on 10/05/2021 is 1 US $ = 78
4. As on 05/06/2021 is 1 US $ = 74

Calculate assessable value of imported machine.

12. Compute the assessable value and total customs duty payable under the Customs
Act, 1962 for an imported machine, based on the following information:

1. Bill Of Entry 20/06/2021, Bill of Inward to port on 25/07/2021

2. Cost of the machine at the factory of the exporter US $ 50,000
3. Transport charges from the factory of exporter to the port for shipment US $
200
4. Handling charges paid for loading the machine in the ship US $ 100
5. Engineering and design charges paid to a firm in US. US $ 120
6. Buying commission paid by the importer US $ 100
7. Lighter age charges paid by the importer US $ 300
8. Freight incurred from port of entry to Inland Container depot US $ 2,000
9. Freight charges from exporting country to India US $ 2,000.

Exchange rates are as follows

Rate of exchange announced by CBIC: as on 20/06/2021 is 1US$ = 60, as on
25/07/2021 is 1US$ = 65
Rate of exchange announced by RBI: as on 20/06/2021 is 1US$ = 64, as on
25/07/2021 is 1US$ = 68
Basic Custom Duty as on 20/06/2021 is 12% as on 25/07/2021 is 10%

Aashritha P
VVPGC
 CUSTOMS DUTY AND GST-1

Calculate assessable value, Duty Payable assuming 12% GST

13. Compute the assessable value and total custom duty from the following data:

a) Machinery imported from USA by air (FOB price) US $4,000

b) Accessories compulsorily supplied along with the machinery US $ 1,000
c) Air freight US $ 1,200
d) Insurance charges actual not available.
e) Local agent's commission to be paid in Indian currency RS 9,300
f) Transportation from Indian airport to factory 4,000.
g) Exchange rate US$ 1 = 60. Provide explanation where ever necessary.
1. BCD @ 15%
2. IGST @ 12%

Aashritha P
VVPGC