Section 8 in The Customs Valuation (Determination of Price of Imported Goods) Rules, 1988.
8. Residual method.
(1)Subject to the provisions of rule 3 of these rules, where the value of imported goods cannot be determined under the provisions of any of the proceeding rules, the value shall be determined using reasonable means consistent with the principles and general provisions of these rules and sub-section (1) of Section 14 of the Customs Act, 1962 (52 of 1962), and on the basis of data available in India.(2)No value shall be determined under the provisions of [this rules] [Substituted by M.F. (D.R.) Notification No. 167/88 Custom (T.U.)/ICD, dated 6th September, 1988, for the words 'these rules'.] on the basis of(i)the selling price in India of the goods produced in India;(ii)a system which provides for the acceptance for customs purpose of the highest of the two alternative values;(iii)the price of the goods on the domestic market of the country of exportation;[(iii-a) the cost of production other than computed values which have been determined for identical or similar goods in accordance with the provision of rule 7-A.] [Inserted by M.F. (D.R.) Notification No. 26/95-Custom (N.T.), dated 24th April, 1995.](iv)the price of the goods for the export to a country other than India;(v)minimum customs values; or(vi)arbitrary or fictitious values.
