Customs Act 1962: Transaction Value Key in Import/Export Valuation, Guided by Customs Valuation Rules 2007

The Customs Act, 1962, defines the valuation of imported and exported goods based on the transaction value, which is the price paid or payable when sold for export to or from India, provided the buyer and seller are unrelated and the price is the sole consideration. This valuation includes additional costs such as commissions, royalties, and transportation. The Customs Valuation Rules, 2007, guide the valuation process, adhering to Article VII of GATT. Importers must declare the value truthfully, supported by invoices, for accurate assessment. The current provisions emphasize transaction value over previous demand value concepts, eliminating references to similar goods or international trade prices.

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