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Former Member
Jan 11, 2011 at 06:36 AM

Import duty process

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Hi Experts,

I have come across this following scenario.

Purchase value of PVC rasin = $986

2. $1 =46.50 INR

3. Total calculated value in INR=986*46.50= 45849INR

4. Assessable value=45849*101%=46307.49

5. Total Custom duty=Assessable value 5%=46307.495%=2315.37 INR

6. Totalpurchase value of the item after calculating the 5% custom duty on Assessable value= Calculated value (Step 3) in INR5% custom duty=458492315.37=48164.37

7. CVD calculation

 (Assessable value (step4)+ Total Custom duty (step5)) * 10%

 (46307.49 + 2315.37) = 48622.86

 48622.86 * 10% = 4862.29

8.Total purchase valuewith CVD = purchase value with custom duty (step 6) + CVD value (step7) = 48164.37 + 4862.29 = 53026.66

9. Cess Calculation

 3% cess on CVD (Step 7)=4862.29*3%=145.87

10. Totalpurchase value after adding 3% cess=Total purchase value withCVD (step 8) + 3% cess=53026.66+145.87 =53172.53

11. Additional 3% Cess on CVD

 (Total Custom Duty (step 5)+ CVD (step7) +3% cess on CVD (step9))* 3%

 (2315.37 + 4862.29 + 145.87) * 3% = 219.71

12. Total purchase value with additional New CVD = (Total purchase valueafter adding 3%cess (step10) + additional 3% cess on CVD (step11)) = 53172.53+219.71=53392.24

13. Additional Import Duty

 (Assessable value (step4) +

Total custom duty (step5) +

CVD calculation (step7) +

3%cess on CVD (step9) +

Additional3%cessonCVD (step11))4%=(46307.492315.374862.29145.87219.71)4%=2154.03

14. Total purchase value after adding import Duty= (Total purchase value after adding additional new CVD (step12) + Additional import duty) = 53392.24+2154.03=55546.26

Please guide how to proceed.

Thanks in Advance