Section 13
Bases For Determination Of Customs Value Of Goods To Be Imported
(1) The rules on customs valuation, annexes and explanatory notes set forth in the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 shall be pursued in determining the customs value of imported goods.
(2) The customs value of goods to be imported shall be determined on the basis of the transaction value of such goods, subject to Sub-section (1).
(3) The importer shall declare the transaction value, attaching therewith the description and documents proving the value of goods imported..
(4) If the transaction value declared by the importer pursuant to Sub-section (3) is in conformity with Sub-section (1), the Customs Officer shall determine the customs value of the goods on the basis of such transaction value. If such transaction value does not appear to include freight, insurance and other related expenses, the Customs Officer
shall determine the transaction value by adding an estimated amount likely to be incurred for the same.
(5) The Director General may prescribe bases for fixing the estimated amount referred to in Sub-section (4).
(6) If there is a reasonable ground to believe that the value declared by the importer pursuant to Sub-section (3) is doubtful, the Customs Officer may ask the importer to produce additional documents or
evidence in writing to prove that such value is the actual transaction value. It shall be the responsibility of such importer to provide documents so asked.
(7) If the customs value of any goods cannot be determined on the basis of the transaction value declared by the importer pursuant to Sub- section (3) or the bills, invoices and documents submitted by the importer, the Customs Officer shall give a notice, accompanied by the reason for the same, to the concerned importer.
(8) If the customs value cannot be determined on the basis of the transaction value pursuant to Sub-section (2), the customs duty of such goods shall be determined on the basis of the transaction value of identical goods already imported into Nepal prior to the import of such goods. Explanation: For the purposes of this Section, “identical goods” means goods which are the same in all respects, including physical characteristics, quality and reputation.
(9) If the customs value cannot be determined on the basis of the transaction value of identical goods pursuant to sub-section(8), the customs duty of such goods shall be determined on the basis of the transaction value of similar goods already imported into Nepal prior to the import of such goods. Explanation: For the purposes of this Section, “similar goods” means goods which, although not alike in all respects, have like characteristics and like component materials which enable them to perform the same functions and to be commercially interchangeable.
(10) If the customs value cannot be determined on the basis of the transaction value of similar goods pursuant to Sub-section (9) and such goods have already been imported into Nepal and sold at market to a person who is not related to the importer, the customs value of such goods shall be determined on the basis of deductive value method, by deducting the tax, duty levied in Nepal on the selling price of each unit of the maximum unit so sold, and other related costs and profits.
(11) If the customs value cannot be determined pursuant to sub- section (10), the customs value shall be determined on the basis of computed value method, also calculating the costs incurred in the production or manufacturing of such goods and profits made or likely to be made by the seller while selling such goods to the importer.
(12) If the customs value cannot be determined pursuant to sub- section (11), the Customs Officer shall so determine the customs value of such goods on a reasonable basis as not to be contrary to the provisions of sub-sections (2), (8), (9) and (10).
(13) Notwithstanding anything contained in sub-sections (10) and (11), if the importer makes a request for the determination of customs value by adopting the procedures set forth in Sub-section (11) prior to adopting the procedures set forth in Sub- section (10), the Customs Officer may determine the customs value in accordance with the provisions of Sub-section (11).
(14) Notwithstanding anything contained elsewhere in this Section, if the owner of the goods imported under the Luggage and Baggage Order for personal purposes or the goods received as a gift or specimen/model and imported from a foreign country makes an application for the valuation of such goods, showing the reason for failure to indicate the transaction value thereof and if the Customs Officer considers the matter to be appropriate, he or she may determine a reasonable customs value of such goods.
(15) If the value declared by an importer pursuant to Sub-section (3) is less than the customs value determined by the Customs Officer pursuant to this Section, the Customs Officer may do the following in relation to such goods:
(a) Clearing such goods by collecting fifty percent additional customs duty on such difference value, or
(b) With the prior approval of the Director General, purchasing, or causing to be purchased, such goods in a manner to pay the amount to be set by adding five percent amount to the value so declared to the importer.
(16) In determining the customs value of goods in accordance with the provisions of this Section, the customs value shall normally be determined in a foreign currency. Where the valuation of goods on which the duty has to be paid at the time of import is made in a foreign currency, the conversion of such currency into Nepalese rupees shall be made according to the selling rate of foreign currency which is prescribed by the Nepal Rastra Bank and prevailing on the day of customs clearance of such goods. In the case of a foreign currency of which exchange rate is not prescribed by the Nepal Rastra Bank, such foreign currency shall be converted into American dollars, and the selling rate of American dollars shall be taken as the basis. Provided that in converting the customs value of the goods of which duty is paid subsequent to the importation thereof under the diplomatic facility, duty facility or full or partial exemption of duty, such conversion shall be made according to the selling rate of foreign currency which is prescribed by the Nepal Rastra Bank and prevailing on the day of payment of the remaining duty.
(2) The customs value of goods to be imported shall be determined on the basis of the transaction value of such goods, subject to Sub-section (1).
(3) The importer shall declare the transaction value, attaching therewith the description and documents proving the value of goods imported..
(4) If the transaction value declared by the importer pursuant to Sub-section (3) is in conformity with Sub-section (1), the Customs Officer shall determine the customs value of the goods on the basis of such transaction value. If such transaction value does not appear to include freight, insurance and other related expenses, the Customs Officer
shall determine the transaction value by adding an estimated amount likely to be incurred for the same.
(5) The Director General may prescribe bases for fixing the estimated amount referred to in Sub-section (4).
(6) If there is a reasonable ground to believe that the value declared by the importer pursuant to Sub-section (3) is doubtful, the Customs Officer may ask the importer to produce additional documents or
evidence in writing to prove that such value is the actual transaction value. It shall be the responsibility of such importer to provide documents so asked.
(7) If the customs value of any goods cannot be determined on the basis of the transaction value declared by the importer pursuant to Sub- section (3) or the bills, invoices and documents submitted by the importer, the Customs Officer shall give a notice, accompanied by the reason for the same, to the concerned importer.
(8) If the customs value cannot be determined on the basis of the transaction value pursuant to Sub-section (2), the customs duty of such goods shall be determined on the basis of the transaction value of identical goods already imported into Nepal prior to the import of such goods. Explanation: For the purposes of this Section, “identical goods” means goods which are the same in all respects, including physical characteristics, quality and reputation.
(9) If the customs value cannot be determined on the basis of the transaction value of identical goods pursuant to sub-section(8), the customs duty of such goods shall be determined on the basis of the transaction value of similar goods already imported into Nepal prior to the import of such goods. Explanation: For the purposes of this Section, “similar goods” means goods which, although not alike in all respects, have like characteristics and like component materials which enable them to perform the same functions and to be commercially interchangeable.
(10) If the customs value cannot be determined on the basis of the transaction value of similar goods pursuant to Sub-section (9) and such goods have already been imported into Nepal and sold at market to a person who is not related to the importer, the customs value of such goods shall be determined on the basis of deductive value method, by deducting the tax, duty levied in Nepal on the selling price of each unit of the maximum unit so sold, and other related costs and profits.
(11) If the customs value cannot be determined pursuant to sub- section (10), the customs value shall be determined on the basis of computed value method, also calculating the costs incurred in the production or manufacturing of such goods and profits made or likely to be made by the seller while selling such goods to the importer.
(12) If the customs value cannot be determined pursuant to sub- section (11), the Customs Officer shall so determine the customs value of such goods on a reasonable basis as not to be contrary to the provisions of sub-sections (2), (8), (9) and (10).
(13) Notwithstanding anything contained in sub-sections (10) and (11), if the importer makes a request for the determination of customs value by adopting the procedures set forth in Sub-section (11) prior to adopting the procedures set forth in Sub- section (10), the Customs Officer may determine the customs value in accordance with the provisions of Sub-section (11).
(14) Notwithstanding anything contained elsewhere in this Section, if the owner of the goods imported under the Luggage and Baggage Order for personal purposes or the goods received as a gift or specimen/model and imported from a foreign country makes an application for the valuation of such goods, showing the reason for failure to indicate the transaction value thereof and if the Customs Officer considers the matter to be appropriate, he or she may determine a reasonable customs value of such goods.
(15) If the value declared by an importer pursuant to Sub-section (3) is less than the customs value determined by the Customs Officer pursuant to this Section, the Customs Officer may do the following in relation to such goods:
(a) Clearing such goods by collecting fifty percent additional customs duty on such difference value, or
(b) With the prior approval of the Director General, purchasing, or causing to be purchased, such goods in a manner to pay the amount to be set by adding five percent amount to the value so declared to the importer.
(16) In determining the customs value of goods in accordance with the provisions of this Section, the customs value shall normally be determined in a foreign currency. Where the valuation of goods on which the duty has to be paid at the time of import is made in a foreign currency, the conversion of such currency into Nepalese rupees shall be made according to the selling rate of foreign currency which is prescribed by the Nepal Rastra Bank and prevailing on the day of customs clearance of such goods. In the case of a foreign currency of which exchange rate is not prescribed by the Nepal Rastra Bank, such foreign currency shall be converted into American dollars, and the selling rate of American dollars shall be taken as the basis. Provided that in converting the customs value of the goods of which duty is paid subsequent to the importation thereof under the diplomatic facility, duty facility or full or partial exemption of duty, such conversion shall be made according to the selling rate of foreign currency which is prescribed by the Nepal Rastra Bank and prevailing on the day of payment of the remaining duty.