Valuation (Customs) — Stevedoring charges not includible in
assessable value of imported goods
Circular No. 80/2002-Cus., dated 29-11-2002
F. No. 467/20/2000-Cus.V
Government of India
Ministry of Finance (Department of Revenue)
Central Board of Excise & Customs, New Delhi
Subject : Inclusion of Stevedoring charges in the
assessable value of imported goods - Regarding.
A reference has been received from the Ministry of
Chemicals & Fertilizers stating that the Customs Authorities at some of the
ports are levying customs duty on stevedoring charges, in addition to the CIF
value of the goods. It has been stated that assessments have been kept
provisional by the Customs Authorities on this account.
The issue has been examined. It is seen that the Hon’ble 2.
Supreme Court of India, in the case of M/s. Coromandal Fertilizers Limited v. Collector of Customs
in Civil Appeal Nos. 2233-42/1988 with Civil Appeal No. 4307/1996, dated
14-12-99 [2000 (115) E.L.T. 7 (S.C.)] has held that “it is open to the
Customs authorities not to assess landing charges at a percentage basis and to
assess them at actuals. But if they do assess them on a percentage basis, they
cover thereby all aspects of landing charges and it is not open to them to seek
to add any amount thereto on the basis that this or that or the other was not
covered thereby”.
The issue, examined during the 3. tariff conference of
Commissioners at Goa on 2nd and 3rd November, 2000, concluded that the
stevedoring charges are nothing but the charges for unloading of the cargo on
the land mass. Therefore, there is no scope for further addition of stevedoring
charges which are in fact unloading charges only.
In view of above, it has been decided not to include the 4.
stevedoring charges, in the assessable value of the imported goods, as they are
adequately covered by the one percent of f.o.b. value levied towards
loading/unloading and handling charges under Rule 9(2)(b) of Customs Valuation
Rules, 1988.
All the field formations are therefore, requested to 5.
finalize the provisional assessments pending at their ports in the light of the
clarification as above. Difficulties, if any in this regard, may be brought to
the notice of the Board immediately.