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a.
Ex-Works :
This
is the value of the goods at the factory gate at origin
b.
FOB
(Free on Board) :
This value is the ex-works value + charges at
origin upto loaded on vessel / aircraft.
Such
origin charges include local transportation, customs clearance
charges and
handling at origin port / airport
c.
C & F (Cost & Freight) :
This
value comprises of the FOB value + air / ocean freight upto
the airport / port of
discharge.
The value does not include the landing charge at the port of
destination.
d. CIF (Cost
Insurance Freight) :
This
value comprises of the FOB value + air / ocean freight upto
the airport / port of discharge +
insurance cost for insurance of the goods upto the country of destination.
The value does not include the landing charge at the port of
destination.
e.
Assessable Value :
The
customs duty in India is charged on the assessable value which
is 1.01 CIF value.
A standardized 1% landing charges are added
to the CIF value for arriving at the assessable value..
If
any local commissions are payable by the importer to the
indenting agent, such commissions
are also to be added for
arriving at the assessable
value. Assessable
value is calculated after
converting the foreign currency CIF
value into Indian Rupee at the current customs notified
exchange rate.
If
the air freight amount is not ascertainable or if the actual
air freight is more than 20% of FOB,
then 20% of FOB is
considered as the air freight for calculation of CIF value.
If
insurance cost is not available, standard insurance charges
equivalent of 1.125% of FOB value
are considered
by Indian Customs for
calculation of CIF price.
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