Home Case Index All Cases Customs Customs + AAR Customs - 2016 (9) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 318 - AAR - CustomsValuation - import of goods from third party and sale in India under the brand name of foreign holding company - principal to principal relationship - applicability of Section 14 of the Act read with the Customs Valuation (Determination of Values of Imported Goods) Rules, 2007? – Held that: - applicant and the overseas third party manufacturers do not qualify as “related entities‟ in as much as none of the conditions specified in Rule 2(2) of the Customs Valuation (Determinations of Value of Imported goods) Rules, 2007 is satisfied; that it is also clear that the price paid by the applicant to the overseas third party manufacturers will be based on the purchase invoices and is the sole consideration for the sale transaction – value of invoice raised will form the transaction value. Trade Mark/ License Fee - payment made in terms of the foreign collaboration agreement - payment under Rule 10 (1)( c)of the Rules – is the above amount required to be added to the Transaction Value of the said goods for levy of Customs Duty under the Act read with the Rules – Held that: - the applicant will pay the Trademark License fee in lieu of grant of right to exploit and use of associated trademark for sale of said goods; that such Trademark License fee will be payable on the basis of the sales made by the applicant in India; that said activities for which the applicant will pay the license fee are post importation activities and are not related to the sale of goods by the third party manufacturers to the applicant. Further, the said payment of Trademark License Fee is a not condition for sale between the third party manufacturers and the applicant – the trademark fee and payment under foreign collaboration agreement do not qualify as payment made under Rule 10 (1)( c)of the Rules and need not be added to the transaction value. Sales and Business Support Fee - payment under Rule 10 (1)( c)of the Rules - is the above amount required to be added to the Transaction Value of the said goods for levy of Customs Duty under the Act read with the Rules – Held that: - payment not made under condition for sale – payment do not qualify as payment under Rule 10 (1)( c)of the Rules and need not be added to the transaction value. There is no Agreement between third party manufacturers and H & M GBC where the third party manufacturers agreed to supply the goods to only such party who enters into an Agreement with the H&M GBC under the Foreign Collaboration Agreement and the Trademark License Agreement. The role of H &M GBC is only restricted to in identifying independent third party manufacturers.
|