CUSTOMS DUTY

1) Trisha Company imported a machine from Europe. From the following

information determine the Assessable Value for Customs Duty and total
value of imported goods.
1. Cost of Machine 350000 Euro
2. The importer sent materials to the exporter for
Manufacturing the machine. Rs. 150000
3. Design and development expenses incurred outside India 65000 Euro
4. Technical fees paid to exporter after import of machine 5000 Euro
5. Installation charges of machine in the factory Rs. 60000
6. Packing charges 700 Euro
7. Transportation charges 1500 Euro
8. Insurance premium paid in India 600 Euro
9. Transportation and insurance charges from port to factory Rs. 20000
10. Exchange rate declared by the Board Rs. 81.88 per Euro
11. Exchange rate declared by the R.B.I. Rs. 82.10 per Euro
12. BCD 12%; IGST 28%.

SOLUTION:

Exchange rate by Board is 1£=₹81.88

Computation of Assessable value for Trisha Company

Particulars Amt(₹) Amt(₹)

Cost of Machine (3,50,000x81.88)   2,86,58,000
Add: inclusions    
Materials sent to exporter 1,50,000  
Design charges(65,000x81.88) 53,22,200  
Packing Charges(700x81.88) 57,316 55,29,516

FOB Value   3,41,87,516

Add: Transportation charges(1,500x81.88) 1,22,820  
Add: insurance charges(600x81.88) 49,128 1,71,948
CIF/AV   3,43,59,464
Note:
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 (i)Cost incurred after the goods reach the port of importation i.e.
Transportation and insurance charges from port to factory is not
included in the AV.
(ii)Technical fees paid to exporter after import of machine and Installation
charges of machine in the factory are not included in AV.

Computation of Customs Duty Payable by Trisha Company for the AY

2020

Total CD
Particulars Amt(₹)
payable

Assessable Value 3,43,59,464  

BCD @ 12% on AV 41,23,136 41,23,136

Add: NCCD Nil   -

Add:CVD Nil   -

Total Duties [A]   41,23,136

Add: social welfare surcharge @ 10% on A   4,12,314

Total Duties (including special duties) [B]   45,35,449

Add: IGST @ 28% on (AV+B)   1,08,90,576

Add: Compensation cess   Nil

Total Customs Duty payable(TCD)   1,54,26,025

Total value of imported goods/ Landed value

Particulars Amt(₹)
Assessable Value (AV) 3,43,59,464
Total Customs Duty payable(TCD) 1,54,26,025

Total value of Imported/Landed goods (AV+TCD) 4,97,85,489

2) Micro Max Company imported goods from America. From the
following information determine the Customs Duty Payable:
1. Cost of goods 15000 Dollars
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2. Packing charges 3000 Dollars
3. Paid commission in India to the broker who
Arranged the deal abroad Rs.10000
4. Freight from America to Indian port 2000Dollars
5. Insurance premium 1000 Dollars
6. Exchange rate:
(a)Declared by the Board 1 Dollar = Rs. 74.14
(b)Declared by the R.B.I. 1 Dollar = Rs. 74.99
Rate of Basic Customs Duty 12%
IGST Rate 18%
SOLUTION:

Exchange rate is 1$=₹74.14

Computation of Assessable Value for Micro Max Company

Particulars Amt(₹) Amt(₹)

Cost of goods (15,000 x74.14)   11,12,100

Add: inclusions    

Packing charges(3,000*74.14) 2,22,420  

Commission paid to broker 10,000 2,32,420

FOB   13,44,520

Add: Transportation cost    

Sea freight charges(2,000*74.14) 1,48,280  

Add: insurance charges(1,000*74.14) 74,140 2,22,420

CIF/AV   15,66,940

Computation of Customs Duty Payable by Micro Max Company

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 Total CD
Particulars Amt(₹)
payable

Assessable Value 15,66,940  

BCD @ 12% on AV 1,88,033 1,88,033

Add: NCCD Nil   -

Add:CVD Nil   -

Total Duties [A]   1,88,033

Add: social welfare surcharge @ 10% on A   18,803

Total Duties (including special duties) [B]   2,06,836

Add: IGST @ 18% on (AV+B)   3,19,280

Add: Compensation cess   Nil

Total Customs Duty payable(TCD)   5,26,116

Total value of imported goods/ Landed value

Particulars Amt(₹)

Assessable Value (AV) 15,66,940

Total Customs Duty payable(TCD) 5,26,116

Total value of Imported/Landed goods (AV+TCD) 20,93,056

3) Find out the Customs duty payable from the following Assessable
value of Cigarettes imported Rs 25, 00,000. BCD -37.5%; NCCD
-5%; CVD-12%; Anti dumping duty- 10%; Safe guard duty-20%;

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 IGST 28% and Compensation cess 30%.
SOLUTION:

Computation of Assessable Value

Total CD
Particulars Amt(₹)
payable

Assessable Value 25,00,000  

BCD @ 37.5% on AV 9,37,500 9,37,500
Add: NCCD @ 5% on (AV+BCD) 171875 171875
Add:CVD @ 12% on (AV+BCD+NCCD) 433125 433125
Total Duties [A]   15,42,500
Add: social welfare surcharge @ 10% on A   1,54,250
Add: Safeguard duty @ 20% on AV   5,00,000
Add: Anti-dumping duty @ 10% on AV   2,50,000

Total Duties (including special duties) [B]   24,46,750

Add: IGST @ 28% on (AV+B)   13,85,090

Add: Compensation cess @ 30% on (AV+B)   14,84,025

Total Customs Duty payable(TCD)   53,15,865

Total value of imported goods/ Landed value

Particulars Amt(₹)

Assessable Value (AV) 25,00,000

Total Customs Duty payable(TCD) 53,15,865
Total value of Imported/Landed goods (AV+TCD) 78,15,865
4) An importer has imported raw materials from America at a cost of 50000
Dollars. Other details are as follows:
Goods were packed for which packing charges were charged 5000 Dollars
Goods were stuffed in returnable container; price of container 2000 Dollars

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Insurance charges 250 Dollars
Sea Freight charges 4000 Dollars
Importer had pain commission to broker in America
Who arranged the transaction 500 Dollars
Rate of exchange: 1 Dollar = Rs. 74.14
Customs Duty: 10%
IGST: 12%
Compensation Cess: 20%
Find the Customs duty payable.
SOLUTION:
Exchange rate is 1$=₹74.14

Computation of Assessable value

Particulars Amt(₹) Amt(₹)

Cost of Raw Materials(50,000*74.14)   37,07,000
Add: Inclusions    
Packing charges (5,000*74.14) 3,70,700  
Commission paid to broker (500*74.14) 37,070 4,07,770

FOB   41,14,770
Add: Transportation cost    
Sea freight charges(4,000*74.14) 2,96,560  
Add: Insurance charges(250*74.14) 18,535 3,15,095

CIF/AV   44,29,865

Note: Price of the returnable container in which goods were stuffed is not
included in Assessable value.

Computation of Customs Duty Payable

Particulars Amt(₹) Total CD payable

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 AV 44,29,865  

BCD @ 10% on AV 4,42,987 4,42,987

Add: NCCD Nil   -

Add: CVD Nil   -

Total Duties [A]   4,42,987

Add: social welfare surcharge @ 10% on A   44,299

Add: special duties(safeguard, protective &

Anti-dumping duties)   Nil

Total Duties (including special duties) [B]   4,87,286

Add: IGST @ 12% on (AV+B)   5,90,058

Add: Compensation cess @ 20% on (AV+B)   9,83,430

Total CD payable (TCD)   20,60,774

Total value of imported goods/ Landed value

Particulars Amt(₹)

Assessable Value (AV) 44,29,865

Total Customs Duty payable(TCD) 20,60,774

Total value of Imported/Landed goods (AV+TCD) 64,90,639

5) Skyline Ltd. an Indian importer has imported raw materials from Netherland
for 5000 Dollars. Other details are as follows:
Packing charges of goods 120 Dollars;
Royalty charges 90 Dollars
Goods were stuffed in container (returnable), price of

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 Container is 400 Dollars.
Insurance premium 50 Dollars
Sea Freight 160 Dollars
Importer had paid commission of 100 dollars to broker who arranged the
transaction
Dollar rate is 1 Dollar = Rs. 74.16
Basic Customs Duty is 10%; Anti dumping duty @10%, Compensation cess at
15% IGST 12%
Find out the assessable value of imported goods and Customs duty payable.

SOLUTION:

Exchange rate is 1$=₹74.16

Computation of Assessable value for Skyline ltd

Particulars Amt(₹) Amt(₹)

Cost of Raw Materials(5,000*74.16)   3,70,800
Add: Inclusions    
Packing charges (120*74.16) 8,899  
Royalty charges (90*74.16) 6,674  
Commission paid to broker (100*74.16) 7,416 22,989
FOB   3,93,789
Add: Transportation cost    
Sea freight charges(160*74.16) 11,866  
Add: Insurance charges(50*74.16) 3,708 15,574
CIF/AV   4,09,363

Note: Price of the returnable container in which goods were stuffed is not
included in Assessable value.

Computation of Customs Duty Payable for Skyline ltd

Particulars Amt(₹) Total CD payable

AV 4,09,363  

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 BCD @ 10% on AV 40,936 40,936
Add: NCCD Nil -
Add:CVD Nil   -
Total Duties [A]   40,936

Add: social welfare surcharge @ 10% on A   4,094

Add: special duties(safeguard, protective

duties)   Nil

Add: Anti-dumping duties @ 10% on AV   40,936

Total Duties (including special duties) [B]   85,966

Add: IGST @ 12% on (AV+B)   59,439

Add: Compensation cess @ 15% on

(AV+B)   74,299
Total CD payable (TCD)   2,19,704

Total value of imported goods/ Landed value

Particulars Amt(₹)

Assessable Value (AV) 4,09,363

Total Customs Duty payable(TCD) 2,19,704

Total value of Imported/Landed goods (AV+TCD) 6,29,067

6) An importer has imported a machine from USA of invoice of 45000 Dollars.

Other details are as follows:
i. Freight from USA to Indian port was 900 dollars
ii. Insurance was paid to the insurer in India Rs. 14000
iii. Design and development charges at 2600 dollars were paid to a
consultancy firm in USA

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 iv. The importer also spent an amount of Rs.75000 in India for development
work connected with the machinery.
v. Rs. 17500 were spent in transporting the machine from Indian port to the
factory of the importer.
vi. Rate of exchange as announced by RBI was Rs. 75.56 = one dollar
vii. Rate of exchange as announced by Central Board of Indirect Tax by
notification Rs. 74.14= one dollar
viii. Rate charged by bank who recovered the amount from the importer Rs.
77.10= one dollar
ix. Foreign exporter has an agent in India. Commission is payable to the
agent in Indian Rupees @5% of invoice price.
x. Customs duty payable was 10%. Rate of IGST is 18%. There is an excise
exemption notification which exempts the duty as is in excess of 12%.
Find out the Customs duty payable if
i) Importer is manufacturer and using the goods himself.
ii) Importer is a trader who has imported goods for subsequent sale in
India.
SOLUTION:
Exchange rate is 1$=₹74.14

Computation of Assessable value

Particulars Amt(₹) Amt(₹)

Cost of Machine(45,000*74.14)   33,36,300
Add: inclusions    
Commission paid to agent @5% on
1,66,815  
(45,000*74.14)
Design & Development charges(2,600*74.14) 1,92,764 3,59,579
FOB   36,95,879
Add: Transportation cost    
Sea freight charges(900*74.14) 66,726  
Add: insurance charges 14,000 80,726
CIF/AV   37,76,605
Note:

1. Cost incurred after the goods reach the port of importation is not included
in the Assessable Value. Hence, cost of Development work in India and
transportation expenses from port to factory is not considered.

Computation of Customs Duty Payable

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 Particulars Amt(₹) Total CD payable
AV 37,76,605  
BCD @ 10% on AV 3,77,661 3,77,661
Add: NCCD Nil   -
Add:CVD Nil   -
Total Duties [A]   3,77,661

Add: social welfare surcharge @ 10% on A   37,766

Add: special duties(safeguard, protective

duties & Anti-dumping duties)   Nil

Total Duties (including special duties) [B]   4,15,427

Add: IGST @ 18% on (AV+B)   7,54,566
Add: Compensation cess   Nil
Total CD payable (TCD)   11,69,992

Total value of imported goods/ Landed value

Particulars Amt(₹)
Assessable Value (AV) 37,76,605
Total Customs Duty payable(TCD) 11,69,992

Total value of Imported/Landed goods (AV+TCD) 49,46,597

Note: Situation (I) and (ii) Importer is a manufacturer or trader; in both the
cases the AV and TCD are same. There is no difference in the imported goods
are captively used or resold.

7) Reliable Industries Ltd (India) imports some machines from USA and the
supplier charges 2,700 Dollars. These machines have been sent by air freight
has been paid 760 dollars. Transit insurance premium was paid 104 dollars.
Packing charges were 50 dollars which were included in aforesaid price.

Find out the assessable value if the exchange rate is 1Dollar= Rs 74.14.
Calculate customs duty payable, if:

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 i) Basic customs duty @10%
ii) Integrated Tax U/S 3(7) of Customs Tariff Act @12%
iii) Ignore Compensation Cess under GST.

SOLUTION:

Computation of Assessable value for Reliable Industries Ltd

Exchange rate is 1$=₹74.14

Particulars Amt(₹)

Cost of Machine(2,700x74.14) 2,00,178

FOB Value 2,00,178

Add: Transportation cost:  

Air Freight {(Actual amt=760x74.14=56,346)or(20% of

FOB=40,036) W.E.L 40,036

Add: Transit insurance(104x74.14) 7,711

CIF/AV 2,47,924

Note: Packing charges is already included in the cost of machine hence not
considered.

Computation of Customs Duty Payable for Reliable Industries Ltd

Total CD
Particulars Amt(₹)
payable

AV 2,47,924  

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 BCD @ 10% on AV 24,792 24,792

Add: NCCD Nil   -

Add:CVD Nil   -

Total Duties [A]   24,792

Add: social welfare surcharge @ 10% on A   2,479

Add: special duties(safeguard, protective duties &

Anti-dumping duties)   Nil

Total Duties (including special duties) [B]   27,271

Add: Integrated tax @ 12% on (AV+B)   33,023

Add: Compensation cess   Nil

Total CD payable (TCD)   60,294

Total value of imported goods/ Landed value

Particulars Amt(₹)
Assessable Value (AV) 2,47,924
Total Customs Duty payable(TCD) 60,294

Total value of Imported/Landed goods (AV+TCD) 3,08,218

8) Bluebell Enterprises ltd a co. of Mumbai imports a machine from England.
Following information is available:
a) Value of Machine 10050 Pounds
b) Design expenses charged separately 800 pounds
c) Freight of machine 250 pounds
d) The importer sent raw material to manufacturer from India Rs. 81250
e) Transportation charges from port to factory Rs. 10000

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 f) Technical fees paid to manufacturer separately after import in India 700
pounds
g) Packing charges and Insurance premium 65 pounds
h) Installation charges of machine in the factory Rs. 85000
i) Royalty payable for each unit of machine reproduced in India 5800 pounds
j) As per the terms, the buyer had to pay a royalty of 1200 pounds to England
for transfer of technology.
Find out the assessable value of machine for determination of Total Customs
duty payable If:
(i) Rate of exchange as announced by RBI was 1 pound sterling = Rs.
91.90
(ii) Notified rate by Central Government Indirect Tax Customs under sec
14(3) by Act 1 pound= Rs. 89.79
(iii) Bank of importer charged 1 Pound=Rs. 91.30
Calculate total customs duty if basic rate is 10 % and IGST 18%
SOLUTION:
Exchange rate by CBITC is 1£=₹89.79

Computation of Assessable value for Bluebell Enterprises ltd

Particulars Amt(₹) Amt(₹)

Value of Machine (10,050*89.79)   9,02,389
Add: inclusions    
Design charges (800*89.79) 71,832  
Cost of RM supplied by the importer 81,250  
Packing & insurance premium (65*89.79) 5,836  

Royalty charges(transfer of technology) {1200*89.79} 1,07,748 2,66,666

FOB   11,69,055
Add: Transportation cost (250*89.79)   22447
CIF/AV   11,91,502
Note:

1. Royalty payable for machine reproduced in India should not be

considered in the Assessable Value.
2. Cost incurred after the goods reach the port of importation is not included
in the Assessable Value. Hence, Installation charges, Technical fees and
transportation expenses from port to factory is not considered

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Computation of Customs Duty Payable for Bluebell Enterprises ltd

Total CD
Particulars Amt(₹)
payable
AV 11,91,502  
BCD @ 10% on AV 1,19,150 1,19,150
Add: NCCD Nil   -
Add:CVD Nil   -
Total Duties [A]   1,19,150
Add: social welfare surcharge @ 10% on A   11,915
Add: special duties(safeguard, protective duties &
Anti-dumping duties)   Nil
Total Duties (including special duties) [B]   1,31,065
Add: IGST @ 18% on (AV+B)   2,38,062

Add: Compensation cess   Nil

Total CD payable (TCD)   3,69,127

Total value of imported goods/ Landed value

Particulars Amt(₹)
Assessable Value (AV) 11,91,502
Total Customs Duty payable(TCD) 3,69,127

Total value of Imported/Landed goods (AV+TCD) 15,60,629

9) Gem ltd., an actual user imports certain goods from USA, at Chennai port, at
cost of $800000 FOB. The other details are as follows:
i. Packing charges $24000
ii. Sea freight to Indian port $14000
iii. Transit insurance $13000
iv. Design and development charges paid to consultant in USA by importer :
9600$
v. Selling commission to be paid by the Indian importer Rs.7000
vi. Rate of exchange announced by RBI Rs.75.45/$
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vii. Rate of exchange notified by the Central board of IT and customs
Rs.74.14/$
viii. Rate of basic custom duty 12%; Anti dumping duty 10% and IGST 28%.
Compute the assessable value of the imported goods and the basic customs duty
payable.
SOLUTION:

Computation of Assessable value for Gem ltd

Exchange rate is 1$=₹74.14

Particulars Amt(₹) Amt(₹)

FOB VALUE (8,00,000*74.14)   5,93,12,000

Add: inclusions    

Packing charges(24,000*74.14) 17,79,360  

Design & Development

7,11,744  
charges(p,600*74.14)
Commission paid 7,000 24,98,104
Actual FOB Value   6,18,10,104

Add: Transportation cost    

Sea freight charges(14,000*74.14) 10,37,960  

Add: insurance charges(13,000*74.14) 9,63,820 20,01,780

CIF/AV   6,38,11,884
Computation of Customs Duty Payable for Gem ltd

Particulars Amt(₹) Total CD payable

AV 6,38,11,884  

BCD @ 12% on AV 76,57,426 76,57,426

Add: NCCD Nil   -

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 Add:CVD Nil   -

Total Duties [A]   76,57,426

Add: social welfare surcharge @ 10% on

A   7,65,743

Add: Anti-dumping duties @10% on AV   63,81,188

Total Duties (including special duties)

[B]   1,48,04,357

Add: IGST @ 28% on (AV+B)   2,20,12,547

Add: Compensation cess   Nil

Total CD payable (TCD)   3,68,16,904

Total value of imported goods/ Landed value

Particulars Amt(₹)

Assessable Value (AV) 6,38,11,884

Total Customs Duty payable(TCD) 3,68,16,904

Total value of Imported/Landed goods (AV+TCD) 10,06,28,788

10) The following information is furnished by Maya Enterprises 8th February
2019 in respect of machinery imported from USA :
FOB value $60000
Exchange rate $1=Rs.74.14
Air freight $9500
Insurance charges not known
Landing charges Rs.3000
Basic customs duty 10%
GST 12%

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Anti dumping duty is applicable @10%
Calculate the total customs duty payable by Maya Enterprises.

SOLUTION:

Computation of Assessable value

Exchange rate is 1$=₹74.14

Particulars Amt(₹) Amt(₹)

FOB VALUE (60,000*74.14)   44,48,400

Add: Transportation & landing cost    

Air freight{(Actual amt >9,500*74.14=7,04,330)

7,04,330  
or (20% of FOB=8,89,680)} W.E.L

Add: insurance charges(1.125% of FOB) 50,045 7,54,375

CIF/AV   52,02,775

Note:

1. An insurance charge is not mentioned in the problem hence we have

considered as 1.125% of FOB Value.
2. Landing charges should not be considered in calculating assessable value.
It has been removed after the introduction of GST Act, 2017.
Computation of Customs Duty Payable

Total CD
Particulars Amt(₹)
payable

AV 52,02,775  

BCD @ 10% on AV 5,20,277 5,20,277

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 Add: NCCD Nil   -

Add:CVD Nil   -

Total Duties [A]   5,20,277

Add: social welfare surcharge @ 10% on A 52,028  

Add: Anti-dumping duties @10% on AV 5,20,277 5,72,305

Total Duties (including special duties) [B]   10,92,583

Add: IGST @ 12% on (AV+B)   7,55,443

Add: Compensation cess   Nil

Total CD payable (TCD)   18,48,026

Total value of imported goods/ Landed value

Particulars Amt(₹)
Assessable Value (AV) 52,02,775
Total Customs Duty payable(TCD) 18,48,026

Total value of Imported/Landed goods (AV+TCD) 70,50,801

11) From the following data, you are required to compute the Customs Duty
payable by Shalaka Co:
(In Euros)
FOB value of textile machinery 1, 50,000
Air freight 28,000
Expenses incurred by seller for improving the design,
at buyer- Importers request 6000
Transit insurance 3000
Rate of IGST 18%

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  Date of Bill of entry: 25-02-2020 (Rate of Basic customs duty 12%;
Exchange rate as notified by CBITC Rs 81.88 per Euro)
 Date of entry inward: 23-02-2020 (Rate of Basic customs duty 18%;
Exchange rate as notified by CBITC Rs 82.12 per Euro)
The price offered by the importer is a special discounted price. The buyer
importer has been specifically directed not to disclose this price to any buyer in
India. Seller’s normal selling price is 140000 Euro.
SOLUTION:

Computation of Assessable value

Exchange rate is 1€=81.88₹

Particulars Amt(₹)
FOB Value of Textile Machinery (1,50,000x81.88) 1,22,82,000
Add: inclusions  
Design charges(6,000x81.88) 4,91,280
Actual FOB Value 1,27,73,280
Add: Transportation cost  

Air freight{(Actual amt:28,000x81.88=22,92,640) or (20% of

FOB=25,54,656)} W.E.L 22,92,640
Add: insurance charges(3,000x81.88) 2,45,640
CIF/AV 1,53,11,560

Computation of Customs Duty Payable

Total CD
Particulars Amt(₹)
payable

AV 1,53,11,560  
BCD @ 12% on AV 18,37,387 18,37,387
Add: NCCD Nil   -
Add:CVD Nil   -

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 Total Duties [A]   18,37,387

Add: social welfare surcharge @ 10% on A   1,83,739

Total Duties (including special duties) [B]   20,21,126

Add: IGST @ 18% on (AV+B)   31,19,883
Add: Compensation cess   Nil
Total CD payable (TCD)   51,41,009

Total value of Imported goods/ Landed value

Particulars Amt(₹)
Assessable Value (AV) 1,53,11,560
Total Customs Duty payable(TCD) 51,41,009

Total value of Imported/Landed goods (AV+TCD) 2,04,52,569

Note:

1. BCD rate as on the date of presentation of Bill of Entry or the Date the of
entry inwards (arrival of goods) whichever is later 25-02-2020 should be
considered.
2. Rate of Exchange declared by CBITC as on Date of Bill of Entry i.e. as
on 25-02-2020, should be considered

12) A consignment is imported by air. CIF price is 2000 Euro. Air freight is 550
Euro and insurance cost is Euro 50. Exchange rate announced by CBIT & C as
per customs notification is 1Euro = Rs.81.88, Basic customs duty payable is
12%. IGST Rate is12%. Find value for customs purpose and total customs duty
payable.

SOLUTION:

Exchange rate is 1€=81.88₹

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Computation of Assessable value

Particulars Amt(₹) Amt(₹)

CIF price of consignment(2,000x81.88)   1,63,760

less:    

Freight(550x81.88) (45,034)  

Insurance(50x81.88) (4,094) (49,128)

FOB Value of Goods   1,14,632

Add: Transportation cost    

Air freight{(Actual amt=45,034) or (20% of

FOB=22,926)} W.E.L 22,926  

Add: insurance charges(50x81.88) 4,094 27,020

Actual CIF/AV   1,41,652

Computation of Customs Duty Payable

Total CD
Particulars Amt(₹)
payable

AV 1,41,652  

BCD @ 12% on AV 16,998 16,998

Add: NCCD Nil   -

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 Add:CVD Nil   -

Total Duties [A]   16,998

Add: social welfare surcharge @ 10% on A   1,700

Total Duties (including special duties) [B]   18,698

Add: IGST @ 12% on (AV+B)   19,242

Add: Compensation cess   Nil

Total CD payable (TCD)   37,940

Total value of imported goods/ Landed value

Particulars Amt(₹)

Assessable Value (AV) 1,41,652

Total Customs Duty payable(TCD) 37,940

Total value of Imported/Landed goods (AV+TCD) 1,79,592

13) From the following particulars, calculate assessable value and total customs
duty payable.

i. Date of presentation of bill of entry: 20-3-2019 [Rate of BCD 12%;

Inter- bank exchange rate: Rs 77.80 and rate notified by CBITC Rs
75.68].
ii. Date of arrival of aircraft in India: 29-3-2019 [Rate of BCD 10%; Inter-
bank exchange rate: Rs 77.60 and rate notified by CBITC Rs 76].
iii. Rate of Integrated tax liveable under section 3(7) of the Customs Tariff
Act: 12%. Ignore GST Compensation Cess.

SOLVED BY ANEESH D’SOUZA

 iv. CIF value 2,000 US dollars; Air freight 500 US dollars, Insurance cost
100 US dollars

SOLUTION:

Computation of Assessable value

Exchange rate is 1$=₹75.68

Particulars Amt(₹) Amt(₹)

CIF Value (2,000*75.68)   1,51,360

less:    

Air Freight (500*75.68) (37,840)  

Insurance(100*75.68) (7,568) (45,408)

FOB Value of Goods   1,05,952

Add: Transportation cost    

Air freight{(Actual amt=37,840) or (20% of

21,190  
FOB=21,190)} W.E.L

Add: insurance charges 7,568 28,758

Actual CIF/AV   1,34,710

Note:

1. BCD rate as on the Date of Presentation of Bill of Entry or the Date of

Entry Inwards (Arrival of Goods) whichever is later i.e. as on 29-03-
2019, should be considered
2. Rate of Exchange declared by CBITC as on Date of Bill of Presentation
of Bill of Entry i.e. as on 20-03-2019, should be considered.
3. Since the product is imported by air, the freight charges should not
exceed 20% of FOB price. Hence FOB price should be calculated by
deducting the actual insurance and freight charges from CIF value.

SOLVED BY ANEESH D’SOUZA

Computation of Customs Duty Payable

Total CD
Particulars Amt(₹)
payable
AV 1,34,710  
BCD @ 10% on AV 13,471 13,471
Add: NCCD Nil   -
Add:CVD Nil   -
Total Duties [A]   13,471
Add: social welfare surcharge @ 10% on A   1,347
Total Duties (including special duties) [B]   14,818
Add: IGST @ 12% on (AV+B)   17,943
Add: Compensation cess   Nil
Total CD payable (TCD)   32,762

Total value of imported goods/ Landed value

Particulars Amt(₹)
Assessable Value (AV) 1,34,710
Total Customs Duty payable(TCD) 32,762

Total value of Imported/Landed goods (AV+TCD) 1,67,472

14) From the following particulars calculate the Customs Duty payable:

i. Assessable Value of hair oil imported in India Rs. 8, 00,000.

ii. Basic Customs Duty payable @ 10%
iii. IGST rate is 18%
iv. Compensation Cess- nil.

SOLUTION:

Computation of Customs Duty Payable

SOLVED BY ANEESH D’SOUZA

 Total CD
Particulars Amt(₹)
payable

AV 8,00,000  
BCD @ 10% on AV 80,000 80,000
Add: NCCD Nil   -
Add:CVD Nil   -
Total Duties [A]   80,000

Add: social welfare surcharge @ 10% on A   8,000

Total Duties (including special duties) [B]   88,000

Add: IGST @ 18% on (AV+B)   1,59,840
Add: Compensation cess   Nil
Total CD payable (TCD)   2,47,840

Total value of imported goods/ Landed value

Particulars Amt(₹)
Assessable Value (AV) 8,00,000
Total Customs Duty payable(TCD) 2,47,840

Total value of Imported/Landed goods (AV+TCD) 10,47,840

15) Assessable value of tobacco imported into India is Rs.7, 80,000. Basic
Customs duty is 35.5%. The IGST Rate is 28% and compensation cess is 60%.
Find the total custom duty payable.

SOLUTION:

Computation of Customs Duty Payable

Total CD
Particulars Amt(₹) payable
AV 7,80,000  

SOLVED BY ANEESH D’SOUZA

 BCD @ 35.5% on AV 2,76,900 2,76,900
Add: NCCD @1% on (AV+BCD) 10,569 10,569
Add:CVD Nil   -
Total Duties [A]   2,87,469
Add: social welfare surcharge @ 10% on A   28,747
Total Duties (including special duties) [B]   3,16,216
Add: IGST @ 28% on (AV+B)   3,06,940
Add: Compensation cess @ 60% on (AV+B)   6,57,730
Total CD payable (TCD)   12,80,886

Total value of imported goods/ Landed value

Particulars Amt(₹)
Assessable Value (AV) 7,80,000

Total Customs Duty payable(TCD) 12,80,886

Total value of Imported/Landed goods (AV+TCD) 20,60,886

Note: National Calamity Contingent Duty (NCCD) should be taken as 1% of

(Assessable Value and Basic Customs Duty).

16) From the following information determine the customs duty payable and
total value of imported goods:

i. Assessable value of goods imported Rs. 6,50,000

ii. Rate of Basic Customs Duty 12.5%
iii. Anti- dumping duty is @ 10%
iv. Rate of IGST 18 %
v. NCCD is charged under GST.

SOLUTION:

SOLVED BY ANEESH D’SOUZA

Computation of Customs Duty Payable

Total CD
Particulars Amt(₹)
payable
Assessable Value 6,50,000  
BCD @ 12.5% on AV 81,250 81,250
Add: NCCD Nil - 
Add:CVD Nil   -
Total Duties [A]   81,250

Add: social welfare surcharge @ 10% on A   8,125

Add: Anti-dumping duty @ 10% on AV   65,000

Total Duties (including special duties) [B]   1,54,375

Add: IGST @ 18% on (AV+B)   1,44,788

Add: Compensation cess   Nil

Total Customs Duty payable(TCD)   2,99,163

Total value of imported goods/ Landed value

Particulars Amt(₹)
Assessable Value (AV) 6,50,000
Total Customs Duty payable(TCD) 2,99,163

Total value of Imported/Landed goods (AV+TCD) 9,49,163

17) From the following particulars calculate the Customs Duty payable:

i. Assessable Value of imported goods Rs. 5, 50,000.

ii. Basic Customs Duty payable @ 12.5%
iii. IGST Rate is 12%
iv. The exporting country has subsidized the seller Rs.42,000

SOLUTION:

Computation of Customs Duty Payable

SOLVED BY ANEESH D’SOUZA

 Total CD
Particulars Amt(₹)
payable

Assessable Value 5,50,000  

BCD @ 12.5% on AV 68,750 68,750
Add: NCCD Nil   -
Add:CVD Nil   -
Total Duties [A]   68,750

Add: social welfare surcharge @ 10% on A   6,875

Add: Duty equal to subsidy   42,000

Total Duties (including special duties) [B]   1,17,625

Add: IGST @ 12% on (AV+B)   80,115
Add: Compensation cess   Nil
Total Customs Duty payable(TCD)   1,97,740

Total value of imported goods/ Landed value

Particulars Amt(₹)
Assessable Value (AV) 5,50,000
Total Customs Duty payable(TCD) 1,97,740

Total value of Imported/Landed goods (AV+TCD) 7,47,740

18) Q Star Ltd. imported 2,000 digital watches from China. The AV is
Rs 10, 00,000.
Calculate customs duty payable if BCD is 12.5%. Anti dumping duty is Rs 100
per watch and compensation cess is nil, IGST 12%.
SOLUTION:

Computation of Customs Duty Payable

Particulars Amt(₹) Total CD payable

Assessable Value 10,00,000  

SOLVED BY ANEESH D’SOUZA

 BCD @ 12.5% on AV 1,25,000 1,25,000
Add: NCCD Nil  
Add:CVD Nil  
Total Duties [A]   1,25,000
Add: social welfare surcharge @ 10%
on A   12,500

Add: Anti-dumping duty (2,000x100)   2,00,000

Total Duties (including special duties)
[B]   3,37,500
Add: IGST @ 12% on (AV+B)   1,60,500
Add: Compensation cess   Nil
Total Customs Duty payable(TCD)   4,98,000

Total value of imported goods/ Landed value

Particulars Amt(₹)

Assessable Value (AV) 10,00,000

Total Customs Duty payable(TCD) 4,98,000

Total value of Imported/Landed goods (AV+TCD) 14,98,000

19) Assessable value of Shampoo imported into India is Rs 2,500. The rate of
taxes on Shampoo is BCD-12.5%, IGST-18% and compensation Cess –Nil.

SOLUTION:

Computation of Customs Duty Payable

Total CD
Particulars Amt(₹)
payable
Assessable Value 2,500  
BCD @ 12.5% on AV 313 313
Add: NCCD Nil   -

SOLVED BY ANEESH D’SOUZA

 Add:CVD Nil   -
Total Duties [A]   313

Add: social welfare surcharge @ 10% on A   31

Total Duties (including special duties) [B]   344

Add: IGST @ 18% on (AV+B)   512
Add: Compensation cess   Nil
Total Customs Duty payable(TCD)   856

Total value of imported goods/ Landed value

Particulars Amt(₹)

Assessable Value (AV) 2,500

Total Customs Duty payable(TCD) 856

Total value of Imported/Landed goods (AV+TCD) 3,356

20) Assessable value of Tobacco product imported into India is Rs 2000. The
rates of Taxes on such are basic customs duty -37.5%; IGST-28%; NCCD-1%;
CVD-12.5% and Compensation Cess - 60%. Compute total customs duty
payable.

SOLUTION:

Computation of Customs Duty Payable

Total CD
Particulars Amt(₹)
payable

Assessable Value 2,000  

BCD @ 37.5% on AV 750 750

SOLVED BY ANEESH D’SOUZA

 Add: NCCD @ 1% on (AV+BCD) 28 28

Add:CVD @ 12.5% on (AV+BCD+NCCD) 347 347

Total Duties [A]   1,125
Add: social welfare surcharge @ 10% on A   112

Total Duties (including special duties) [B]   1,237

Add: IGST @ 28% on (AV+B)   906

Add: Compensation cess @ 60% on (AV+B)   1,942

Total Customs Duty payable(TCD)   4,086

Total value of imported goods/ Landed value

Particulars Amt(₹)

Assessable Value (AV) 2,000

Total Customs Duty payable(TCD) 4,086

Total value of Imported/Landed goods (AV+TCD) 6,086

SOLVED BY ANEESH D’SOUZA