   
  
G/VAL/Q/IND/7  
 
22 May 2023  
(23-3468) Page: 1/1 
Committee on Customs Valuation  Original: English  
 
 
NOTIFICATION UNDER ARTICLE 22 OF AGREEMENT  ON IMPLEMENTATION  
OF ARTICLE VII OF THE GENERAL AGREEMENT  
ON TARIFFS AND TRADE  1994  
QUESTIONS FROM THE UNITED STATES TO INDIA  REGARDING  
DOCUMENT S G/VAL/Q/IND/2 AND  G/VAL/Q/IND/ 5 
INDIA 
The following communication, dated 18 May 2023, is being circulated at the request of the delegation 
of the United States . 
 
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The United States would like to thank India for its responses in G/VAL/Q/IND/5 to our questions in 
G/VAL/Q/IND/4 with regard to G/VAL/Q/IND/2. The United States requests responses to the follow -
up questions below regarding those responses:  
 
Question 7  
 
India's response to question 7 in G/VAL/Q/IND/5 states that valuation of imported goods is carried 
out in terms of Section 14(1) of the Customs Act 1962 read with Customs Valuation (Determination 
of Value of Imported Goods) Rules, 2007. Rule 10 of the Cust oms Valuation (Determination of Value 
of Imported Goods) Rules, 2007 provides that for determination of transaction value, cost and 
services are computed on an actual basis. However, in rare cases when the cost of transport 
associated with the delivery of the imported goods to the place of importation and the cost of 
insurance  to the place of importation is not ascertainable, notional values are used for faster customs 
clearance.  
 
This provision is to be used only in cases where the importer is not able to declare the cost of 
transport and insurance. In other cases, additions are made on an actual basis.  
 
The United States asks India to clarify whether the notional transport and insurance values used are 
updated with actual costs once that information is ava ilable at a later date?  
 
Question 10  
 
The United States thanks India for providing a link to Circular 20/1997 -Customs dated 17.06.1997.  
 
Article 2(d) of Circular 20/1997 -Customs dated 17.06.1997 indicates that interest charges are not 
added to the value of  merchandise provided the price declared is the price actually paid or payable 
in the ordinary course of trade. Please indicate how India Customs determines that the price declared 
is the price actually paid or payable in the ordinary course of trade in th ose instances.  
 
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