Taking a Look at Customs Valuation

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Customs Valuation
What is Customs Valuation? Customs valuation can be defined as process to value to a good or service for the purposes of import or export. Basically, it will involve tariff concessions, implementing trade policy and others. For our information, this systems has been used a thousand of years ago among different cultures, and was been proven by evidence in the Roman Empire and the Han Dynasty. Further, the first recorded custom tariff was from 336 in Palmyra, an oasis city in the Syrian Desert. But, since 20th century, this system has been strength by existence of Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade (GATT) 1994.

In India, customs valuation is a compulsory process that needs to handle. As stated, when an import consignment arrive in India they need to clear the customs barrier which is their goods will be analyze in terms of value and a suitable import tariff imposed. The parties that responsible to this process are the importer or agent which is they need to pay the duty before the goods are cleared by the customs. Further, tariff is a schedule of duties and it also known as the duty or tax imposed by a country and the duty or tax within the tariff schedule. Basically, a tax will imposed when the goods cross the border between two countries.

Besides, export and import are levied either at specific rates or on ad valorem basis. For case of ad valorem duties, the value of the goods becomes the basis for

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