Assessment of Bulk Liquid Cargo – Ship Ullage Report or Shore Tank receipt
Board’s Circular No.96/2002-Customs, dated 27.12.2002 has conveyed that, in the case of bulk liquid cargo imports, whether for home consumption or warehousing, the shore tank receipt quantity should be taken as the basis for levy of customs duty.
A doubt has arisen that in cases where customs duty is chargeable on ad-valorem basis, whether there would be any requirement for determination of the quantity of the goods as the basis for levy of customs duty would be the transaction value, i.e., invoice price and not the quantity.
Board now clarifies that, in all cases where customs duty is leviable on ad-valorem basis, the assessment of bulk liquid cargo should be based on invoice price, which is the price paid or payable for the imported goods, i.e., transaction value, irrespective of quantity ascertained through shore tank measurement or any other manner. Further, in respect of delivery at more than one port, the value should be apportioned based on the quantity intended to be discharged at the relevant ports. However, wherever the customs duty is leviable at specific rate, the determination of quantity would be relevant for levy of customs duty.
CIRCULAR NO. , Dated: January 12, 2006