Paragraph 21, page 40 of the Secretariat report notes that a landing charge of 1% of the c.i.f. value is added to the c.i.f. value to calculate a good's transaction value.
Could India explain the relationship between the "landing charge" and the actual costs incurred in the Government's handling of freight at the port of importation? Could India please explain what costs of the Government the charge is intended to cover?
Reply: Article 8.2 of the Customs Valuation Agreement (CVA) states that, in framing its legislation, each Member shall provide for the inclusion in or the exclusion from the customs value, in whole or in part, the loading, unloading and handling charges associated with the transport of the imported goods to the port or place of importation. India has provided for the inclusion in the assessable value of landing charges which represent the cost of unloading and handling charges of the imported goods at the port of importation.
The landing charges are not paid to the Government, nor are they intended to cover the costs incurred by the Government. The charges are included in the customs value of goods for levying duties.
Is the landing charge applied at the same rate of 1% of c.i.f. regardless of the mode of transport under which goods are imported (i.e. sea carriage, rail, air, truck)?
