SECTION 14.: Valuation of goods for purposes of assessment.

(1) For the purposes of the Customs Tariff Act, 1975, or any other law for the time being in force, the value of the imported goods and export goods shall be the transaction value of such goods, as determined in accordance with the rules made in this behalf:

Provided that such transaction value in the case of imported goods shall include, in addition to the price actually paid or payable for the goods when sold for export to India, any amount that the buyer is liable to pay for costs and services, including commissions and brokerage, assists, engineering, design work, royalties and licence fees, costs of transportation to the place of importation, insurance, and handling charges:

Provided further that such price shall be calculated with reference to the rate of exchange as in force on the date on which a bill of entry is presented under section 46, or a shipping bill or bill of export, as the case may be, is presented under section 50.

(2) Notwithstanding anything contained in sub-section (1), if the Board is satisfied that it is necessary or expedient so to do, it may, by notification in the Official Gazette, fix tariff values for any class of imported goods or export goods, having regard to the trend of value of such or like goods, and where any such tariff values are fixed, the duty shall be chargeable with reference to such tariff value.

(3) Where there is no sale of imported goods or export goods, or where the transaction value of the goods is not determinable, the value of such goods shall be determined in accordance with the rules made in this behalf.

Explanation.—For the purposes of this section—

(a) “rate of exchange” means the rate of exchange—

(i) determined by the Board, or

(ii) ascertained in such manner as the Board may direct,

for the conversion of Indian currency into foreign currency or foreign currency into Indian currency;

(b) "foreign currency" and "Indian currency" have the meanings respectively assigned to them in clause (m) and clause (q) of section 2 of the Foreign Exchange Management Act, 1999.

(Section 14 has been amended vide BUDGET 2007-08)

[OLD(1) For the purposes of the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force where under a duty of customs is chargeable on any goods by reference to their value, the value of such goods shall be deemed to be the price at which such or like goods are ordinarily sold, or offered for sale, for delivery at the time and place of importation or exportation, as the case may be, in the course of "international trade, where­

(a) the seller and the buyer have no interest in the business of each other; or

(b) one of them has no interest in the business of the other,
and the price is the sole consideration for the sale or offer for sale";*

(* Words in bold substituted wef 01/03/2002)

[OLDinternational trade, where the seller and the buyer have no interest in the business of each other and the price is the sole consideration for the sale or offer for sale :]

provided that such price shall be calculated with reference to the rate of exchange as in force on the date on which a bill of entry is presented under section 46, or a shipping bill or bill of export, as the case may be, is presented under section 50;

(1A) Subject to the provisions of sub-section (1), the price referred to in that sub-section in respect of imported goods shall be determined in accordance with the rules made in this behalf.

(2) Notwithstanding anything contained in sub-section (1) or sub-section (1A), if the Board * is satisfied that it is necessary or expedient so to do it may, by notification in the Official Gazette, fix tariff values for any class of imported goods or export goods, having regard to the trend of value of such or like goods, and where any such tariff values are fixed, the duty shall be chargeable with reference to such tariff value.

(* Words in bold substituted wef 01/03/2002 & it has replaced "Central Government")

(3) for the purposes of this section -
(a) "Rate of exchange" means the rate of exchange -
(i) Determined by the Board*, or
(ii) Ascertained in such manner as the Board* may direct, For the conversion of Indian currency into foreign currency or foreign currency into Indian currency;

(* Words in bold substituted wef 01/03/2002 & it has replaced "Central Government")

(b) "foreign currency" and "Indian currency" have the meanings respectively assigned to them in clause (m) and clause (q) of section 2 of the Foreign Exchange Management Act, 1999;*

(sub-section 3 clause (b) * Words in bold substituted wef 01/03/2002)

[OLD (b) "Foreign currency" and "Indian currency" have the meanings respectively assigned to them in the Foreign Exchange Regulation Act, 1973 (46 of 1973).]

(Pl. refer Cus. Cir. No. 82/2002 V, Dt. 03/12/2002 for Transaction value of imported auto components as OE Parts and Service Parts)

(Please refer Cus Ntf.No.64/2001 dt.14/06/2001)

(Please see Ntf.No.65/2001,,and Ntf.No.72/2001,,and 74/2001 all dated 28/06/2001)
(Please See Cir No.46/2001 dt.10/08/2001)