Section 9(1) in The Customs Valuation (Determination of Price of Imported Goods) Rules, 1988.
(1)In determining the transaction value, there shall be added to the price actually paid or payable for the imported goods, -(a)the following cost and services, 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 purpose 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.
