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Import Values Relevant for Customs Clearance

                 a.   Ex-Works :
                        This is the value of the goods at the factory gate at origin

                 b.   FOB (Free on Board)  :
                       This value is the ex-works value + charges at origin upto loaded on vessel / aircraft.
                       Such origin charges include local transportation, customs clearance charges and 
                       handling at origin port / airport 

                 c.   C & F (Cost & Freight) :
                       This value comprises of the FOB value + air / ocean freight upto the airport / port of
                       discharge.
                       The value does not include the landing charge at the port of destination.

                 d.   CIF (Cost Insurance Freight) :
                       This value comprises of the FOB value + air / ocean freight upto the airport / port of discharge +
                               insurance cost for insurance of the goods upto the country of destination.  
                              The value does not include the landing charge at the port of destination.
                 e.    Assessable Value :
                        The customs duty in India is charged on the assessable value which is 1.01 CIF value. 
                        A standardized 1% landing charges are added to the CIF value for arriving at the assessable value..

                        If  any local commissions are payable by the importer to the indenting agent, such commissions 
                                are also to be added for arriving at the  assessable value.  Assessable value is calculated after
                        converting the foreign currency CIF value into Indian Rupee at the current customs notified
                        exchange rate.

                         If the air freight amount is not ascertainable or if the actual air freight is more than 20% of FOB,
                                 then 20% of FOB is considered as the air freight for calculation of CIF value.

                        If insurance cost is not available, standard insurance charges equivalent of 1.125% of FOB value 
                         are considered by Indian Customs for calculation of CIF price.

 

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