Section 10(1) in The Customs Valuation (Determination of Value of Imported Goods) Rules, 2007
(1)In determining the transaction value, there shall be added to the price actually paid or payable for the imported goods.-(a)the following to the extent they are incurred by the buyer but are not included in the price actually paid or payable for the imported goods, namely:-(i)commissions and brokerage, except buying commissions;(ii)the cost of containers which are treated as being one for customs purposes with the goods in question;(iii)the cost of packing whether for labour or materials;(b)The value, apportioned as appropriate, of the following goods and services where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale for export of imported goods, to the extent that such value has not been included in the price actually paid or payable, namely:-(i)materials, components, parts and similar items incorporated in the imported goods;(ii)tools, dies, moulds and similar items used in the production of the Imported goods;(iii)materials consumed in the production of the imported goods;(iv)engineering, development, art work, design work, and plans and sketches undertaken elsewhere than in India and necessary for the production of the imported goods;(c)royalties and licence fees related to the imported goods that the buyer is required to pay, directly or indirectly, as a condition of the sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable;(d)The value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues, directly or indirectly, to the seller;(e)all other payments actually made or to be made as a condition of sale of the imported goods, by the buyer to the seller, or by the buyer to a third party to satisfy an obligation of the seller to the extent that such payments are not included in the price actually paid or payable.Explanation.- Where the royalty, licence fee or any other payment for a process, whether patented or otherwise, is includible referred to in clauses (c) and (e), such charges shall be added to the price actually paid or payable for the imported goods, notwithstanding the fact that such goods may be subjected to the said process after importation of such goods.
