India and China have enjoyed a long-standing economic relationship, which has been strengthened by the India-China Free Trade Agreement. The agreement has significantly facilitated trade between the two countries, and there have been several customs notifications issued in recent times.
One of the most important customs notifications is the Customs Notification number 1/2019 dated January 1, 2019. The notification lays out the rules under which goods traded between India and China will be assessed for customs duty.
The notification stipulates that all goods that are imported from China into India will be assessed for customs duty based on the value of the goods as determined by the transaction value. The transaction value is defined as the price actually paid or payable for the goods.
The notification also sets out the rules for determining the value of goods that are imported into India from China, where the transaction value cannot be used to determine the customs duty. This includes cases where the transaction value is not acceptable to Customs authorities due to certain circumstances, such as related-party transactions.
In such cases, the customs duty will be assessed based on the transaction value of identical goods or similar goods. The customs authorities will also consider other factors such as the cost of production, profitability of the transaction, and other relevant economic factors.
It is important to note that the Customs Notification number 1/2019 applies to all imports from China into India, regardless of the mode of transport or the location of the importer. The notification also applies to all goods that are imported into India, whether for personal use or for commercial purposes.
Overall, the India-China Free Trade Agreement has had a positive impact on trade relations between the two countries. The Customs Notification number 1/2019 provides a clear framework for the assessment of customs duty on goods traded between India and China, which has helped to facilitate the smooth flow of goods and services between the two countries.