Valuation (Customs) — Freight and insurance charges in
respect of postal consignment
F. No. 467(19)89-Cus. V/ICD, dated 18-8-1989
Government of India
Ministry of Finance (Department of Revenue)
New Delhi
Subject : Freight and insurance charges in respect of
postal consignments.
Attention is invited to the above mentioned subject which
was discussed in the Conference of Collectors of Customs on GATT Valuation Code
held at Calcutta on 8th & 9th December, 1988.
It has been reported that the Board’s instructions in CBR
letter No. 23(23)55-Cus. I/VI, dated 13-11-56, which provided that when the
invoice does not show the freight and insurance charges as well as the war risk
insurance, a flat rate of 5% shall be added towards freight 1% towards insurance
and varying rates of 1/8% to 1/2% towards war risk insurance depending upon the
port of export, are still being applied in some Postal Appraising Departments.
The Customs Valuation Rules, 1988 in Rule 9(2) provides that for imports other
than by air a flat rate of 21% should be added towards freight and insurance
charges, when the actual charges are not available. The Board’s instruction of
1956 would have no application after the Customs Valuation Rules, 1988 were
brought into force.
The Board desires you to instruct all Officers working
under you that for all types of imports other than air, including postal
imports, the flat rate of 21% should be applied when insurance and freight
charges are not available. The Boards instruction of 1956 cited above stand
withdrawn with the coming in force of Customs Valuation Rules, 1988.