base value for freight and custom duty

[Former Member]

hi,

1) may i know for local freight(in country), the freight cost is based on purchased item net value or by its own?

2) inbound freight(until port) - freight cost is based on purchased item net value or by its own?

3) handling charges(from port to plant) - freight cost is based on purchased item net value or by its own charges?

4) may i know for custom duty, the tax base value is based on purchased item net value, correct?

thanks

[Former Member]

issue1)

frieght value is not depends on net value it is of its own.

issue2)

for oversease frieght it is depends on invoice value as 1.5 % if the fright in not applicable(dat means if the frieght is beared by the vendor itself then the consums authority charging the frieght as 1.5 % of the invoice value)

issue3) same as issue 1)

issue 4)

basic customs value is calculated on sum of -

invoice value(base amount) 1.5%frieght in absecnce of fright by vendor1.123 % if insurance is not there customs authority charging the insurance to hike the customs values + 1 % landing charges.

regards,

sujit

[Former Member]

Hi SNB,

can i clarify again of your reply as i am quite confused. do you base on india calculation? i just need general practice.

1) for local freight, freight cost not based on purchased item value

2) if it is overseas freight and it is FOB, which means i as buyer i need to pay the freight cost. the freight cost is 1.5% of the purchased item value? if it is CIF, then i as buyer do not need to bear.

3) handling charges from port to plant is not based on purchased item value.

4) i a bit confused of your custom duty calculation. can explain again?

thanks

[Former Member]

base value

+

1.5%frieght(in absence)

+

1.123% insurance(in absence)

+

1% landing changes

_________________

TOTAL

10% basic customs duty on total

_______________________

TOTAL1 = (total+ 10%)

CVD 14% on TOTAL1

ecess 2% on CVD on 14%

Hecess 1% on CVD on 14%

_______________________

TOTAL2 = ( 10%14%2%+1%)

ecess 2% on TOTAL2

hecess1% on TPTAL2

______________________

TOTAL3=(TOTAL2+TOTAL)

4% Additional duty of customs on TOTAL3

hope this will clear ur doubts

regards,

sujit

[Former Member]

hi,

1) in absence means we need to pay the sea freight or vendor pay the sea freight?

2) if it is FOB, i pay. so i need to pay the cost of 1.5%(base on purchase item)?

3) if it is CIF, i no need to pay. so i need to pay the cost of 1.5%(base on purchase item)?

thanks