Import Duty - Levy of Customs duty on notional interest on advance payments made to the foreign supplier/parties on import of goods.

Document Text

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. Subject: Levy of Customs duty on notional interest on advance payments made to the foreign supplier/parties on import of goods: The Board has received representations 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. from several 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.

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