PROPER VALUE DECLARATION

PRESENTED BY
HARI PRIYA . M
 CONTENT

• Custom Valuation

• Overview of import
valuation
• Its Components

• Basic Comparison
 CUSTOMS
VALUATION
• Customs valuation is a customs
procedure used to determine the
customs value of imported goods
in order to calculate the
correctlevels of customs duty,
import VAT.
 METHODS FOR DETERMINING THE
VALUE OF IMPORTED GOODS
• TRANSACTION • TRANSACTION • TRANSACTION
VALUE VALUE OF VALUE OF
IDENTICAL SIMILAR
GOODS GOODS

• DEDUCTIVE • COMPUTED • FALL-BACK

METHOD METHOD METHOD
 TRANSACTION VALUE

• The transaction value method is one of the

primary methods for determining the customs
value of imported goods. It is based on the price
actually paid or payable for the goods when sold
for export to the country of importation.
 COMPONENTS OF
TRANSACTION VALUE

• Base Price
• Adjustments to the
transaction value
• Related party
transaction
An example

 A company in India is importing mobile phone

components from a supplier in China . The
agreed-upon price between the Indian buyer and
the Chinese seller for a shipment of 10,000
screen displays is $30,000 USD.
 TRANSACTION VALUE OF IDENTICAL
GOODS
• The transaction value of identical goods method for
customs valuation involves using the price paid or
payable for identical goods sold for export to the same
country at or about the same time as the basis for
determining the customs value of the imported goods.
• This method is applicable when the goods being
imported are identical in all respects to goods already
imported and sold to unrelated buyers in the same
country.
• It allows customs authorities to use the price of these
identical goods as a reference point for determining the
customs value of the imported goods, ensuring consistency
and fairness in valuation.

An example

 The LED TV sets are imported into India from both China and
Japan. The Indian buyer imports 100 units of LED TV sets from
China for $50,000 USD, and another Indian importer imports
the same brand and model of LED TV sets directly from Japan
at the same time, purchasing 50 units for $30,000 USD.
 TRANSACTION VALUE OF SIMILAR
GOODS

• The transaction value of similar goods method for

customs valuation involves using the price paid or
payable for similar goods sold for export to the same
country at or about the same time as the basis for
determining the customs value of the imported
goods.
An example

 A company in India is importing a specific

model of digital cameras from a supplier in
Japan. The Indian buyer purchases 300 units
of these digital cameras for $90,000 USD.
 COMPARISION OF TRANSACTION VALUE OF
IDENTICAL GOODS Vs SIMILAR GOODS

• Nature of Goods: Identical goods are exactly the

same in all respects, while similar goods have
comparable characteristics but may not be
identical.

• Requirement: Transaction value of identical goods

requires the availability of identical goods for
comparison, whereas transaction value of similar
goods requires the availability of similar goods.
• Flexibility: Transaction value of similar goods
provides more flexibility when identical goods are not
available for comparison.

• Accuracy: Transaction value of identical goods may

provide a more accurate reflection of the customs
value when identical goods are available for
comparison, whereas transaction value of similar
goods relies on the similarity of goods for estimation.
• Application: Both methods aim to ensure a
fair and accurate customs valuation based
on market realities and transactions
between unrelated parties.
THANK YOU