This document provides an overview of customs valuation and procedures in India. It discusses how the transaction value is the primary basis for valuing imported and exported goods according to Section 14(1) of relevant regulations. It also outlines how tariff values may be set by the Central Board of Excise and Customs (CBEC) for certain goods. The document then reviews exchange rate determination practices and relevant dates for rates/values. Finally, it summarizes import procedures such as filing bills of entry and export procedures like obtaining let export orders and filing shipping bills.

1. Valuation of Customs Duties
• Ajay Babu Bandi
 Practising Chartered Accountant
 M.Com, FCMA,ACA,IFRS(Certified)

3. The value of Imported and Export
Goods shall be the Transaction
Value of such Goods

4. Transaction Value u/s 14(1)
Price actually paid or payable for the goods
When sold or export to/from India
For delivery at the time & place of importation
/exportation
Where the Buyer and Seller of the goods are not
related and
Price is the sole consideration for the sale
Subject to other conditions specified in the Rules

5. The Customs Valuation
(Determination of Value of
Imported) Rules, 2007 is
relevant in this regard

6. Exchange Rate
Means rate of exchange.. The rate of exchange –
(i) determined by CBEC, or
(ii) ascertained in the manner as CBEC may direct
Exchange Rates are determined and announced by
CBEC during the last week of the previous month
This Exchange Rate is applicable for all Bill of
Entry filed in the next month

7. Exchange Rate

8. Relevant Date for Exchange Rate
The price shall be calculated based on the
exchange rate on the relevant date—

9. For Imports Relevant Date is date of
presenting Bill of Entry u/s
46
For Exports Relevant Date is date of
presenting Shipping Bill or
Bill of Export u/s 50

10. Tariff Value u/s 14(2)
 If the CBEC is satisfied that it is necessary or
expedient to do so, it may fix Tariff Values for any
class of Imported Goods or Export Goods, having
regard to the trend of value of such goods or like goods
 Where such Tariff Values are fixed, the duty shall be
chargeable with reference to such Tariff value

11. Relevant Date for Rate and Value

12. For Imported Goods Sec.15

14. For Exported Goods Sec.16

16. Customs Procedures - Import
 Landing of Goods
 Delivery of Import Manifest / Report
 Grant of Entry Inwards to the Master of vessel
/permission to unload the goods
 Unloading of goods
 Unloaded goods to be in the custody of the
custodian until their clearance
 Filing of Entry for Import, i.e., Bill of Entry

17. Customs Procedures - Import
 Timing of Entry of Bill of Entry
 Assessment of Duty
 Payment of Duty
 Clearance of Imported Goods from Custom
Station :
 Clearance for Home Consumption
 Ware housing
 Transit of Goods
 Transhipment

19. Customs Procedures - Export
 Filing of Shipping Bill/ Bill of Export
 “Let Export” Order
 Grant of Entry Outwards
 Loading of Goods on conveyance for
exportation
 Delivery of Export Manifest/ Report
 No conveyance to leave without written
order