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Most of the customs duties are ad valorem. Goods have, therefore, to be valued for purpose of assessment. The Valuation Rules, 1998 follow the GATT provisions whereunder the norm is the transaction value or invoice price but it is subject to the rider that the invoice value to be acceptable should be a fully commercial and genuine price. Where the proper office has reasonable doubt about the truth and accuracy of the declared transaction value (grounds from which will at the request of the importer be intimated to him), he may ask the importer to furnish further information and evidence to substantiate the declared transaction value and in the event of the importer’s failure to do so, he may after hearing the importer reject the declared transaction value and proceed further the Valuation Rules; vide new Rule 10A. This means that the burden to prove his value for the purpose of the importer.

Date of determination of rate of duty etc

Since exchange rates, rates of duty and tariff values keep changing, the law provides that the rate as in force on the date of presentation of bill of entry for home consumption will be the rate applicable.


Remission of duty is available if imported goods are lost (otherwise than as a result of pilferage) or destroyed at any time before clearance for home consumption.

Loading and unloading of goods

An incoming ship or aircraft has to submit on arrival within 24 hours (12 hours in the case of aircraft) an import manifest listing the goods to be unloaded. The ship is then granted an entry inwards and can thereafter start unloading the goods. An outgoing vessel is granted entry outwards and can load goods thereafter.

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