9. Cost of services


(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 purposes 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.



(2) For the purposes of sub-section (1) and sub-section (1A) of Section 14 of the Customs Act, 1962 (52 of 1962) and these rules, the value of the imported goods shall be the value of such goods, for delivery at the time and place of importation and shall include -



(a) the cost of transport of the imported goods to the place of importation;



(b) loading, unloading and handling charges associated with the delivery of the imported goods at the place of importation; and



(c) the cost of insurance:



Provided that in the case of goods imported by air, the cost and charges referred to in clauses (a), (b) and (c) above, -



(i) where such cost and charges are ascertainable, shall not exceed twenty per cent of the free on board value of such goods,



(ii) where such cost and charges are not ascertainable such cost and charges shall be twenty per cent of the free on board value of such goods;



Provided further that in the case of goods imported other than by air and the actual cost and charges referred to in clauses (a), (b) and (c) above are not ascertainable, such cost and charges shall be twenty-five per cent of the free on board value of such goods.



(3) Additions to the price actually paid or payable shall be made under this rule on the basis of objective and quantifiable data.



(4) No addition shall be made to the price actually paid or payable in determining the value of the imported goods except as provided for in this rule.

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