Madhav Ltd imported a machinery from USA for which the payment was made in USD. The following details are furnished: Particulars Amount (USD) Cost of machine at the factory of the exported country 50,000 Transport charge

Computation of Assessable Value under Custom Law Particulars Amount (USD) Cost of machine at the factory of the exported country 50,000.00 Transport charges incurred by exporter from his factory to port for shipment 3,000.00 Handling charges paid for loading the machine in the ship 500.00 Design charges for the machine 9,500.00 FOB Value 63,000.00 Buying commission paid to the agent - not includible - Freight charges from foreign country to port in India (restricted to 20% of FOB value if actual is not known, here actual is known) 8,000.00 Insurance charges @ 1.125% of FOB (63,000 x 1.125%) (since not ascertained, deemed to be 1.125% of FOB) 708.75 CIF value / assessable value in USD 71,708.75 Assessable value in Indian Currency (CBIC Exchange rate is taken on the date of bill of entry for Import duty purpose) (71,708.75 x ₹ 80) ₹ 57,36,700