Section 4(2) in The Customs Valuation (Determination of Price of Imported Goods) Rules, 1988.
(2)The transaction value of imported goods under sub-rule (1) above shall be accepted; provided that -(a)[ the sale is in the ordinary course of trade under fully competitive conditions; [Inserted by Notification No. G.S.R. 652(E), dated 7.9.2001 (w.e.f. 16.8.1988)](b)the sale does not involve any abnormal discount or reduction from the ordinary competitive price(c)the sale does not involve special discounts limited to exclusive agents;(d)objective and quantifiable data exist with regard to the adjustments required to be made, under the provisions or rule 9, to the transaction value.](e)[] [Sub-rule (a) renumbered as Sub-rule (e) by Notification No. G.S.R. 652(E), dated 7.9.2001 (w.e.f. 16.8.1988)] there are no restrictions as to the disposition or use of the goods by the buyer other than restrictions which, -(i)are imposed or required by law or by the public authorities in India; or(ii)limit the geographical area in which the goods may be resold; or(iii)do not substantially affect the value of the goods;(f)[] [Sub-rule (b) renumbered as Sub-rule (f) by Notification No. G.S.R. 652(E), dated 7.9.2001 (w.e.f. 16.8.1988)] the sale or price is not subject to same condition or consideration for which a value cannot be determined in respect of the goods being value;(g)[] [Sub-rule (c) renumbered as Sub-rule (g) by Notification No. G.S.R. 652(E), dated 7.9.2001 (w.e.f. 16.8.1988)] no part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller unless an appropriate adjustment can be made in accordance with the provisions of rule 9 of these rules; are(h)[] [Sub-rule (d) renumbered as Sub-rule (h) by Notification No. G.S.R. 652(E), dated 7.9.2001 (w.e.f. 16.8.1988)] the buyer and seller are not related, or where the buyer and seller are related, that transaction value is acceptable for customs purposes under the provisions of sub-rule (3) below.
