G/VAL/W/338  
 
10 October  2019 
(19-6539) Page: 1/3 
Committee on Customs Valuation  Original: English  
 
NOTIFICATION UNDER A RTICLE 22 OF THE  
AGREEMENT ON IMPLEME NTATION OF ARTICLE V II OF  
THE GENERAL AGREEMEN T ON TARIFFS AND TRA DE 1994  
INDIA 
Questions from the United States to India regarding documents G/VAL/N/1/IND/4  
and G/VAL/N/2/IND/2  
The following submission, dated 26 September 2019, is being circulated at the request of the 
delegation of the United States.  
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Question 1  
Rule 9(1) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, states 
that the "residual method " of valuation applies "[p]rovided that the value so determined shall not 
exceed the price at which such or like goods are ordinarily so ld or offered for sale for delivery at the 
time and place of importation in the course of international trade, when the seller or buyer has no 
interest in the business of other and price is the sole consideration for the sale or offer for sale. " 
Please exp lain how this provision is consistent with Article 7 of the CVA, in light of the prohibition on 
the use of minimum, arbitrary, or fictitious customs values. Does this mean that "the price at which 
such or like goods are ordinarily sold …" may be used as the  customs value?  
Question 2  
Rule 10(1)(e) provides for an addition to the price actually paid or payable, to the extent they are 
incurred by the buyer but are not included in the price actually paid or payable, for "all other 
payments actually made or to be  made as a condition of sale of the imported goods, by the buyer 
to the seller, or by the buyer to a third party to satisfy an obligation of the seller …" 
Please explain how the addition of "all other payments …" is consistent with Article 8(4) of the CVA, 
which provides that "[n]o additions shall be made to the price actually paid or payable in determining 
the customs value except as provided in this Article. " 
Question 3  
The explanation to Rule 10(1) states that "[w]here the royalty, license fee or any other  payment for 
a process, whether patented or otherwise, is includible referred to in clauses (c) and (e), such 
charges shall be added to the price actually paid or payable for the imported goods, notwithstanding 
the fact that such goods may be subjected to the said process after importation of such goods. " 
For greater clarity, please provide an example of the application of the explanation to Rule 10(1).  G/VAL/W/338  
 
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  Question 4  
General Note 1 of the Schedule contains a provision on "use of generally accepted accounting 
principles " that mirrors Paragraph 1 of the Interpretative Notes – General Notes, Use of Generally 
Accepted Accounting Principles, of the CVA.  
Has India also implemented Paragraph 2 of that General Note? If so, could India identify the measure 
that implemen ts Paragraph 2?  
Questions of the United States on India's Checklist of Issues  
Question 5  
With respect to Question 1(a)(ii) of G/VAL/N/2/IND/2, please clarify whether India considers 
evidence of an intercompany price as prima facie grounds for regarding the price as being influenced 
by the relationship between the buyer and the seller.  
Question 6  
With respect to Question 4 of G/VAL/N/2/IND/2, please identify the provision of India 's law that 
implements the language from Article 6(2) of the CVA, which states, in part, that "[n]o Member may 
require or compel any person not resident in its own territory to produce for examination, or to allow 
access to, any account or other record for purposes of determining a computed value. " 
Question 7  
With respect to Question 6 of G/VAL/N/2/IND/2, India notes that "the value of the goods shall include 
the elements of freight of the imported goods to the place of importation, insurance, and loading, 
unloading and handling charges associated with the delivery of the imported goods to the place of 
importation. " 
Rule 10(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, 
further explains that "where the cost of transport … is not ascertainable, such cost shall be 20% of 
the free on board value of the goods, " that the charges for loading, unloading, and handling "shall 
be one per cent of the free on board value of the goods, " and that where the cost of insurance is not 
ascerta inable, "such cost shall be 1.125% of the free on board value of the goods. " 
Please explain Rule 10(2) in light of the recognized need under the CVA for a "fair, uniform and 
neutral system for the valuation of goods for customs purposes that precludes the use of arbitrary 
or fictitious customs values, " and in light of Rule 10(3), which implements Article 8.3 of the CVA and 
states that "[a]dditions to the price actually paid or payable shall be made under this rule on the 
basis of objective and quantifiable data." 
Question 8  
With respect to Question 8 of G/VAL/N/2/IND/2, please provide additional information on domestic 
legislation that ensures the confidentiality of information submitted for purposes of customs 
valuation. For example, does India 's law includ e provisions that allow for the disclosure of such 
information, and, if so, under what circumstances?  
Question 9  
In response to Question 13 of G/VAL/N/2/IND/2, India states that "[t]he interpretative notes to the 
Agreement have been included in the body of  the Customs Valuation (Determination of Price of 
Imported Goods) Rules 2007 as amended, as a schedule to the rules. " 
Please confirm that all the interpretative notes have been included in this instrument. Are paragraph 
6 to the Interpretative Note to Arti cle 6, as well as the Interpretative Notes to Articles 9 and 11, 
included?  G/VAL/W/338  
 
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  Question 10  
Please identify the administrative instructions that implement the Decision of 26 April 1984 on the 
Treatment of Interest Charges in the Customs Value of Imported Goods.  
Question 11  
Please identify the administrative instructions, including the official gazette citation, that implement 
the Decision of 24 September 1984 on the Valuation of Carrier Media Bearing Software for Data 
Processing Equipment.  
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