Section 4(3) in The Customs Valuation (Determination of Price of Imported Goods) Rules, 1988.
(3)(a)Where the buyer and seller are related, the transaction value shall be accepted provided that the examination of the circumstances of the sale of the imported goods indicate that the relationship did not influence the price.(b)In a sale between related persons, the transaction value shall be accepted, whenever the importer demonstrates that the declared value of the goods being valued, closely approximates to one of the following values ascertained at or about the same time(i)the transaction value of identical goods or of similar goods in sales to unrelated buyers in India;(ii)the deductive value for identical goods or similar goods(iii)[ the computed value for identical goods or similar goods.] [Inserted by M.F. (D.R.) Notification No. 26/95 Custom (N.T.), dated 24th April, 1995.]Provided that in applying the values used for comparison, due account shall be taken of demonstrated difference in commercial levels, quantity levels, adjustments in accordance with the provisions of rule 9 of these rules and cost incurred by the seller in sales in which he and the buyer are not related;(c)substitute values shall not be established under the provisions of Clause (b) of this sub-rule.
