Report by the Secretariat (WT/TPR/S/249):III. TRADE POLICIES AND PRACTICES BY MEASURE: (2) Measures Directly Affecting Imports:(ii) Customs valuation and clearance: Page 39, paragraphs 20-25:
Does India apply paragraph 2 of the Decision on the Valuation of Carrier Media Bearing Software for Data Processing Equipment? If not, why not, and would India consider applying paragraph 2?
Reply: India follows the valuation practice mentioned in Para 1 of the Decision No. 4.1 adopted during the Tenth Meeting of the Committee on Customs Valuation held on 24 September 1984. Para 2 of the Decision indicates that the approach to include only the cost or value of the carrier medium and not to include the cost or value of the data or instructions for valuation purposes is optional. Further, Para 3 of the Decision requires that only those Parties which adopt the practice of not including cost or value of the data or instructions while assessing carrier media will be required to notify the committee.
In India's case, the approach on valuation is based on transaction value under Section 14 of the Customs Act 1962 read with the Customs Valuation Rules, 2007 which provide for inclusion of additional elements such as royalties and license fees in the assessable value under certain conditions. In view of Para 3 of the aforesaid Decision, India is not required to notify its position to the Valuation Committee. Elaborate on conditions.
