CUS CIR NO.86/2002 DATE 12/12/2002
- Document type
- Circular
- Reference no.
- H
- Dated
Films Import-Valuation of Royalty/License Fees
Films Import-Valuation of Royalty/License Fees - Valuation treatment of royalty/license fees payable on imported films-regarding.
2. The matter has been examined. The subject notification No. 205/77-Cus., dated 24.9.1977, as amended by Notification No. 103/86-Cus., dated 17.02.1986, has since been rescinded vide Notification No. 47/96-Cus., dated 23.07.1996. Further, as per Rule 9(1)(c) of the Customs Valuation Rules, 1988, royalties and license fee related to the imported goods that the buyer is required to pay, directly or indirectly, as a condition of sale of the goods being valued, shall be added to the price actualy paid or. payable for the imported goods to the extent that such royalties and fees are not included in the price actually paid or payable. This would mean that Customs duty should be based on the intrinsic value of the product, which shall include the payment on account of royalty/license fee directly related to the imported goods. As the Customs duty exemption Notification 205/77-Cus., dated 24.9.1977, is no more in force, the imported Cinematographic Films shall be leviable to the appropriate rate of Customs duty on the value determined as above.
3. Your are accordingly requested. to issue necessary instructions to the assessing officers in your jurisdiction to strictly follow the above said instructions, and difficulties, if any, faced in this regard may be brought to the notice of the Board.
Sd/-
(N.J. Kumaresh)
Under Secretary to the Government of India