Chandu Industries Ltd. imported some goods from USA. The details of the transactions are as under: CIF value of goods: US $1,44,000 Rate of basic duty: 10% Rate of education cess: 2% Rate of secondary & higher educat

Computation of Assessable Value and Total Custom Duty Payable Particulars Value (₹) Duty (₹) A. CIF value of goods (US $1,44,000 × ₹63) 90,72,000 B. Add: Landing charges @ 1% of CIF value 90,720 C. Assessable Value (A+B) 91,62,720 D. Basic Custom Duty @ 10% of C (91,62,720 × 10%) 9,16,272 Value after BCD (C+D) 1,00,78,992 E. Countervailing Duty @ 12% of (C+D) (1,00,78,992 × 12%) 12,09,479 Total after CVD (C+D+E) 1,12,88,471 21,25,751 (D+E) F. Add: Education Cess @ 2% of (D+E) (21,25,751 × 2%) - rounded off to nearest rupee 42,515 G. Add: SHEC @ 1% of (D+E) (21,25,751 × 1%) - rounded off to nearest rupee 21,258 Total Custom Duty Payable (D+E+F+G) 21,89,524 Notes: The exchange rate as notified by CBEC (₹63) would be applicable. Rule 4(2) of Customs Valuation Rules provides that landing charges @ 1% of CIF are to be added to the CIF to arrive at the assessable value. Where similar goods manufactured in India are liable to excise duty, the countervailing duty at the same rate is levied upon the imported goods.