As for the question whether India would consider applying paragraph 2, it is not possible to predict decisions that might be taken in future.
U.S. Follow-Up Question: Under what conditions does India include the royalties and license fees? Do these circumstances include where the buyer must pay either directly or indirectly as a condition of sale of the goods being valued? If not, please explain this practice in light of Article 8 of the Customs Valuation Agreement.
Reply: The conditions for inclusion of royalties and license fees are similar to those envisaged in the WTO CVA i.e. where the royalties and licence fees related to the imported goods that the buyer is required to pay, directly or indirectly, as a condition of the sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable.
