M/s Rajkumar Enterprises have imported a machine from U.K. and furnished the following particulars in relation to such import: S. No. Particulars Amount (i) F.O.B. cost of the machine 20,000 U.K. Pounds (ii) Freight (air

Computation of assessable value of goods for the purpose of customs duty for M/s Rajkumar Enterprises Particulars Amount (UK Pounds) FOB cost of Machine 20,000 Add: License fee relating to imported goods payable by the buyer as a condition of sale (20% on 20,000 UKP) 4,000 24,000 Value in (₹) Sub-Total (24,000 UKP x ₹90) 21,60,000 As per explanation to section 14(1) of the customs act, 1962, assessable value should be calculated with reference to the rate of exchange notified by the CBIC. Add: Commission paid to a local agent in India 15,000 FOB value as per customs 21,75,000 Add: Air Freight (since air freight is ascertainable and is lower than 20% of FOB value, actual sum to be considered. [3000 x ₹90 = ₹2,70,000) 2,70,000 Add: Insurance paid to the insurer in India 28,000 CIF Value / Assessable Value 24,73,000