Provisions relating to Abatement of duty on damaged or deteriorated goods under Customs Act, 1962:

The provisions are as under-

• When it is shown to the satisfaction of the AC/DC that (i ) Any imported goods had been damaged or had deteriorated at any time before or during the unloading of the goods in India ;or (ii) Any imported goods ,other than warehoused goods ,had been damaged at any time after the unloading thereof in India but before their examination under section 17 ,on account of any accident  not due to any wilful act ,negligence  or default of the importer ,his employee or agent ; or (iii) Any warehoused goods had been damaged at any time before clearance for home consumption on account of any accident not due to any wilful act ,negligence ,or default of the owner ,his employee or agent ,

Then the goods shall be chargeable to abated duty determined in the following manner-

Duty leviable on such damaged goods =   Duty chargeable before damage  x value of the damaged goods

                                                                                    Value of goods before damage 

Abatement of duty on damaged goods     =

Duty leviable on the goods before damage – Duty leviable on the goods after damage

• Valuation of damaged/deteriorated goods : Either of the following methods at the option of the owner-
• The value of such goods may be ascertained by the Proper Officer
• Such goods may be sold by the Proper Office by Public Auction or by tender or with the consent of owner in any other manner and the gross sale proceeds shall be deemed to be the value of such goods