Postal Import - Freight and insurance charges in respect of postal consignments.

Document Text

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), Central Board of Excise & Customs, New Delhi. Subject: Freight and consignments: insurance charges in respect of postal 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 The Boards instruction of 1956 cited above stand withdrawn with the coming in force of Customs Valuation Rules, 1988.

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