Customs Issued Notice to Some Indian Exporters to Pay Duty Difference Over Calculation on Transaction Value


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Indian exporters have been issued notices by the customs department, requesting payment of duty differences on rice exported over the past 18 months. This unusual tax demand has the potential to significantly impact rice shipments from India. Previously, exporters paying a 20% duty based on the Free on Board (FOB) value of rice. However, the customs department now mandates consideration of the transaction value, necessitating payment for any resulting duty variance.