The Hindu Business Line : Inclusion of barging charges in assessable value: CBEC clarifies

THE Central Board of Excise and Customs (CBEC), in a recent trade , has clarified that all expenses incurred by the importer in bringing the goods to the landmass of the country will be includible in the assessable value.

The issue pertains to inclusion of barging/lighterage charges in the assessable value of the goods being imported. Taking the cue from a Supreme Court judgment, it has now been clarified that the above charges borne by an importer in bringing the goods from the outer anchorage to the landmass has to be included in the assessable value as "extended cost of transportation' under Rule 9(2)(a) of Customs Valuation Rules, 1988.

The 1 per cent landing charges collected by the Customs under the said Rule are towards loading, unloading and handling charges at the place of importation, which is the landmass of the country.

According to the circular, the Tariff Conference held at Chennai in January 2000 had observed that the freight charges to be added to the assessable value shall include all elements of cost incurred in the transportation of the goods from the point of exportation to the place of import, that is, the final jetty at which the goods are unloaded.

According to the Law Ministry, which has examined the issue, the apex court verdict in the case of Garden Silk Mills Ltd vs Union of India, that the value of goods is deemed to be the price at which such goods are ordinarily sold or offered for sale for delivery at the time and place of importation in the course of international trade, appeared to be more relevant.

The importation is complete when goods reach the landmass and not at the outer anchorage point.

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