The following procedure for determination of Customs Value & Assessment of
motor vehicles is prescribed in order to ensure its uniform application at all Customs stations
throughout the country:-
(i) The FOB value of a motor vehicle at the time of its manufacture, as
certified by the manufacturers or their authorized local agents shall be
accepted.
(ii) In case of domestic models, for which the FOB values are not
provided by the manufacturers, the FOB values certified by the
manufacturers or their authorized agents in case of export models of
similar vehicles shall be loaded by 5% on the C&F value.
(iii) T**he local agent's commission and other incidental charges, if any, shall**
be added to the so ascertained FOB value, if not already included in the
price certified by the manufacturers or their authorized local agents.
(iv) The actual amount of ocean/air freight as calculated from the country
of original manufacture shall be added for the purpose of arriving at
the C&F value of the imported vehicle.
(v) Actual amount of insurance in the country of manufacture or first
registration shall also be added in order to arrive at the CIF value.
However, in case of non-availability of insurance memo for any
reason, an amount equivalent to 1% of C&F value shall be included.
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(vi) Landing charges @ 1% of the sum total of CIF value shall be added to
the price in order to arrive at the assessable value.
(vii) The value of optional/additional accessories shall also be included in
the assessable value of the vehicle, which shall be subjected to the rate
of duty and taxes applicable to the vehicle in which the accessories are
fitted.
(viii) Customs duties and taxes shall be worked out on the basis of
prescribed rates at the time of filing of the goods declaration (GD)
except for old and used vehicles for which a cumulative amount of
all leviable duties and taxes has been notified in the Gazette.
(ix) Customs value of old and used vehicle Asian makes meant for
transport of persons upto 1800cc are prescribed to be determined under
SRO 577(I)/2005 dated 6th June, 2005.
(x) Whenever, the customs value cannot be determined under SRO
577(I)/2005 dated 6th June, 2005, the same is to be finalized in
accordance with the Valuation Ruling issued under Section 25A of the
Customs Act, 1969, Where there is no Valuation Ruling and the value
cannot be determined under 577(I)/2005 dated 6th June, 2005 too, the
same is to be determined under on the basis of MSRP (Manufacturer
Suggested Retail Price) while allowing the admissible depreciation in
following three manners:-
a). Depreciation in the assessable value, for the purpose of
assessment shall be allowed on the import of used/second hand
motor vehicles at the rate of 2% per month for each
completed month,(1st day of January of the year subsequent to
the year of manufacture till the date of shipment as per Bill of
lading), subject to a maximum of 50%.
b). Notwithstanding anything contained in Para (a) above, the
depreciation in the assessable value, for the purpose of
assessment on the import of used/ second hand vehicles falling
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under PCT heading 87.03 shall be allowed at the rate of 1% per
month for each completed month (1st day of January of the year
subsequent to the year of manufacture till the date of shipment
as per Bill of lading), subject to a maximum of [60% for cars
and 50% for other vehicles].
c). Notwithstanding anything contained in paragraph (a) and (b)
above, the depreciation in the assessable value, for the purpose
of assessment on the import of used/ second hand vehicles i.e.
trucks, agricultural tractors, buses and vans shall be allowed at
the rate of 2% per month for each completed month, (1st day of
January of the year subsequent to the year of manufacture till
the date of shipment as per Bill of lading), subject to maximum
of 60%.
