Definitions Related party Method of valuation - Accept Transaction value unless buyer and seller are related parties - After Rejection follow Important -Declaration by Exporter For the purposes of these rules, persons shall be deemed to be "related" only if – -they are officers or directors of one another's businesses; -they are legally recognised partners in business; -they are employer and employee; -any person directly or indirectly owns, controls or holds five percent or more of the outstanding voting stock or shares of both of them; - one of them directly or indirectly controls the other; both of them are directly or indirectly controlled by a third person; - together they directly or indirectly control a third person; or - they are members of the same family.

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SEQUENCE & IMPORTANT FACTORS TO CONSIDER
IN VALUATION OF EXPORT GOODS BY
CUSTOMS
CUSTOMS VALUATION (DETERMINATION OF VALUE OF EXPORT GOODS) RULES, 2007 NOTIFICATION NO. 95/2007-CUSTOMS (N.T.) DULY AMENDED

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SEQUENCE
 Definitions – remember
 Related party - remember
 Method of valuation
 Accept Transaction value unless buyer and seller are related parties
 If not acceptable Rejection of Transaction Value – Rule 8
 After Rejection follow:
 Determination of export value by COMPARISION – Rule 4
 If not possible then – Determination of export value by COMPUTED method – Rule 5
 If still not possible then – Determination of export value by RESIDUAL method – Rule 6
 Important
 Declaration by Exporter

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RELATED PARTY
2. For the purposes of these rules, persons shall be deemed to be "related" only if –
i. they are officers or directors of one another's businesses;
ii. they are legally recognised partners in business;
iii. they are employer and employee;
iv. any person directly or indirectly owns, controls or holds five per cent or more of the outstanding
voting stock or shares of both of them;
v. one of them directly or indirectly controls the other;
vi. both of them are directly or indirectly controlled by a third person;
vii. together they directly or indirectly control a third person; or
viii. they are members of the same family.

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