Chapter: 2.4 Valuations of Goods

Valuations of Goods

The quantification of customs duty payable essentially requires the calculation of the 'value' for customs purpose. As per the provisions, customs duty is payable as a percentage of 'value' often called 'Assessable Value' or 'Customs Value'. The value may either be (a) 'Value' as defined in section 14(1) of Customs Act, or (b) 'Tariff Value' prescribed under section 14(2) of Customs Act.

Tariff value

Tariff value is the value that is fixed by Central Government for any class of imported goods or exported goods. Government takes into consideration trends of value of such or like goods while fixing tariff value. Once so fixed, duty is payable as percentage of this value.