Valuation Customs — Notional interest on advance payments
made to the foreign supplier parties on import goods
F. No. 467/37/91-Cus.V, dated 19-9-1991
Government of India
Ministry of Finance (Department of Revenue)
Central Board of Excise & Customs, New Delhi
Levy of Customs duty on notional interest on
advance Subject : payments made to the foreign supplier/parties on import of
goods.
The Board has received representations from several
importers regarding the levy of customs duty on notional interest on advance
payments made to the foreign suppliers/parties on import of the goods. It has
been further represented that consignments are pending clearance as Customs
Authorities are insisting for payment of customs duty on the notional
interest.
In this connection, I am directed to say that the issue of
inclusion of interest charges in the assessable value for the purpose of levy of
customs duty is under active consideration of the Board. Pending finalisation of
the issue the consignments may not be held up and allowed clearance on execution
of Bond with sureties for the differential amount of duty involved to safeguard
the Government Revenue.