Section 2(2) in The Customs Valuation (Determination of Price of Imported Goods) Rules, 1988.
(2)For the purpose 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 5 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.Explanation I. - The term "person also includes legal person".Explanation II - Persons who are associated in the business of one another in that one is the sole agent or sole distributor or sole concessionaire, however described, of the other shall be deemed to be related for the purpose of these rules, if they fall within the criteria of this sub-rule.[3. Determination of the method of valuation. - For the purpose of these rules, -(i)subject to rules 9 and 10A, the value of imported goods shall be the transaction value;(ii)if the value cannot be determined under the provisions of Clause (i) above the value shall be determined by proceeding sequentially through rules 5 to 8 of these rules,]
