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Union of India - Section

Section 2 in The Customs Valuation (Determination of Value of Imported Goods) Rules, 2007

2. Definitions.

(1)In these rules, unless the context otherwise requires,-
(a)"computed value" means the value of imported goods determined in accordance with rule 8.
(b)"deductive value" means the value determined in accordance with rule 7.
(c)"goods of the same class or kind", means imported goods that are within a group or range of imported goods produced by a particular industry or industrial sector and includes identical goods or similar goods;
(d)"identical goods" means imported goods -
(i)which are same in all respects, including physical characteristics, quality and reputation as the goods being valued except for minor differences in appearance that do not affect the value of the goods;
(ii)produced in the country in which the goods being valued were produced; and
(iii)produced by the same person who produced the goods, or where no such goods are available, goods produced by a different person, but shall not include imported goods where engineering, development work, art work, design work, plan or sketch undertaken in India were completed directly or indirectly by the buyer on these imported goods free of charge or at a reduced cost for use in connection with the production and sale for export of these imported goods;
(da)[ "place of importation" means the customs station, where the goods are brought for being cleared for home consumption or for being removed for deposit in a warehouse;] [Inserted by Notification No. G.S.R. 1202(E), dated 26.9.2017 (w.e.f. 13.9.2007).]
(e)"produced" includes grown, manufactured and mined
(f)"similar goods" means imported goods -
(i)which although not alike in all respects, have like characteristics and like component materials which enable them to perform the same functions and to be commercially interchangeable with the goods being valued having regard to the quality, reputation and the existence of trade mark;
(ii)produced in the country in which the goods being valued were produced; and
(iii)produced by the same person who produced the goods being valued, or where no such goods are available, goods produced by a different person, but shall not include imported goods where engineering, development work, art work, design work, plan or sketch undertaken in India were completed directly or indirectly by the buyer on these imported goods free of charge or at a reduced cost for use in connection with the production and sale for export of these imported goods;
(g)"transaction value" means the value referred to in sub-section (1) of section 14 of the Customs Act, 1962;
(2)[ For the purposes of sub-section (1) of section 14 of the Customs Act, 1962 (52 of 1962) and these rules, the value of the imported goods shall be the value of such goods, and shall include -
(a)the cost of transport, loading, unloading and handling charges associated with the delivery of the imported goods to the place of importation;
(b)the cost of insurance to the place of importation:
Provided that where the cost referred to in clause (a) is not ascertainable, such cost shall be twenty per cent of the free on board value of the goods:Provided further that where the free on board value of the goods is not ascertainable but the sum of free on board value of the goods and the cost referred to in clause (b) is ascertainable, the cost referred to in clause (a) shall be twenty per cent of such sum:Provided also that where the cost referred to in clause (b) is not ascertainable, such cost shall be 1.125% of free on board value of the goods:Provided also that where the free on board value of the goods is not ascertainable but the sum of free on board value of the goods and the cost referred to in clause (a) is ascertainable, the cost referred to in clause (b) shall be 1.125% of such sum:Provided also that in the case of goods imported by air, where the cost referred to in clause (a) is ascertainable, such cost shall not exceed twenty per cent of free on board value of the goods:Provided also that in the case of goods imported by sea or air and transshipped to another customs station in India, the cost of insurance, transport, loading, unloading, handling charges associated with such transshipment shall be excluded.Explanation. - The cost of transport of the imported goods referred to in clause (a) includes the ship demurrage charges on charted vessels, lighterage or barge charges.] [Substituted by Notification No. G.S.R. 1202(E), dated 26.9.2017 (w.e.f. 13.9.2007).]
(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 five 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 persons.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, howsoever 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.