1. Sequence Definitions Related party Determination of Method of valuation - Accept Transaction value unless buyer and seller are related parties After Rejection follow: - Transaction value of Identical goods – Rule 4 - If not possible then – Transaction value of similar goods – Rule 5 - If still not possible to determine value under Rules 3, 4 and 5 then go to Rule 7 or thereafter Rule 8 - Deductive value – Rule 7 - Computed value Rule 8 - Residual value Rule 9 Important - Add cost & services Rule 10 - Declaration by Importer Rule 11 Related Party 2. 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 per cent 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 IMPORT GOODS BY
CUSTOMS
CUSTOMS VALUATION (DETERMINATION OF VALUE OF IMPORT GOODS) RULES, 2007
(NOTIFICATION NO. 94/2007 - CUSTOMS (N.T.) AS AMENDED BY NOTIFICATION NO. 91/2017 - CUSTOMS (N.T.) DATED 26TH SEPTEMBER, 2017)
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SEQUENCE
 Definitions – remember
 Related party - remember
 Determination of Method of valuation – Rule 3
 Accept Transaction value unless buyer and seller are related parties
 If not acceptable Rejection of Transaction Value – Rule 12
 After Rejection follow:
 Transaction value of Identical goods – Rule 4
 If not possible then – Transaction value of similar goods – Rule 5
 If still not possible to determine value under Rules 3, 4 and 5 then go to Rule 7 or thereafter Rule 8
 Deductive value – Rule 7
 Computed value Rule 8
 Residual value Rule 9
 Important
 Add cost & services Rule 10
 Declaration by Importer Rule 11

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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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