·         As per Rule 3 (1 ) ,the value of exports goods shall be the transaction value. However, such transaction value is subject to rule 8 i.e. the proper officer has a right to reject such transaction value.

·         The transaction value shall be accepted even where the buyer and seller are related, provided that the relationship has not influenced the price

·         If the value cannot be determined under the provisions of sub-rule (1) and sub-rule(2), the value shall be determined by proceeding sequentially through rules 4 to 6.

·         The value of the export goods shall be based on the transaction value of goods of like kind and quality exported at or about the same time to other buyers in the same destination country of importation or in its absence another destination country of importation adjusted in accordance with the provisions of sub-rule(2)

·         In determining the value of export goods under sub-rule (1), the proper officer shall make such adjustments as appear to him reasonable , taking into consideration the relevant factors, including-

1.       Difference in the dates of exportation

2.       Difference in commercial levels and quantity levels

3.       Difference in composition , quality and design between the goods to be assessed and the goods with which they are being compared,

4.       Difference in domestic freight and insurance charges depending on the place of exportation

If the value cannot be determined under rule 4, it shall be based on a computed value, which shall include the following:-

·         Cost of production , manufacture or processing of export goods;

·         Charges , if any , for the design or brand;

·         An amount towards profit

Subject to the provisions of rule 3, where the value of the export goods cannot be determined under the provisions of rules 4 and 5, the value shall be determined using reasonable means consistent with the principles and general provisions of these rules provided that local market price of the export goods may not be the only basis for determining the value of export goods.

The exporter shall furnish a declaration relating to the value of export goods in the manner specified in this behalf