MT Ltd. imported an automated machine by ship, from USA in January, 2021. The details in this regards are as under: (i) Cost of machine at the factory of the exporter: USD 10,000 (ii) Transport charges from the factory o

Computation of assessable value and total customs duty and integrated tax payable Sr. No. Particulars Amount 1. Cost of machine at the factory (in USD) $10,000 2. Add: Transportation charges up to port. (in USD) $400 3. Add: Handling charges at port. (in USD) $40 4. FOB Value of Machine (in USD) $10,440 Exchange rate of ₹75 per USD is to be considered as notified by CBIC on the date of filing of bill of entry. (Higher of Bill of Entry date or Entry Inward date for exchange rate, and Bill of Entry date for BCD rate) ₹75 5. FOB Value in Rupees ($10,440 x ₹75) ₹7,83,000 6. Add: Freight charges up to India (USD 2500 * ₹75) ₹1,87,500 7. Add: Lighterage charges paid by the importer ₹8,000 8. Add: Ship demurrage charges paid at port of importation ₹9,000 9. Add: Insurance @ 1.125% of FOB Value of goods, Third proviso to rule 10(2) of Custom valuation Rules 2017. (i.e. 1.125% of ₹7,83,000) ₹8,809 10. CIF Value (Assessable Value) ₹9,96,309 Rate of duty is 10% (rate of duty prevalent on the date of presentation of bill of entry or the rate prevalent on the date of entry inwards, whichever is later). Bill of Entry date BCD rate is 15%, Entry Inward date BCD rate is 10%. Lower of the two is 10%. 11. Add: Basic custom duty @ 10% (10% of ₹9,96,309) ₹99,631 12. Add: Social welfare surcharge @ 10% of BCD (10% of ₹99,631) ₹9,963 13. Value for integrated tax purpose (Assessable Value + BCD + SWS) ₹11,05,903 14. Add: integrated tax @ 18% (levied on assessable value, Custom duties and social welfare cess) (18% of ₹11,05,903) ₹1,99,062 15. Total Custom Duty and integrated tax payable (₹99,631 + ₹9,963 + ₹1,99,062) ₹3,08,656 Working Note: Buying commission is not includible in the Assessable value.