85. Amendment of section 2. - In section 2 of the Customs Act, 1962 (52 of 1962) (hereinafter referred to as the Customs Act), in clause (41), for the words, brackets and figures "sub-section'(l) of section 14", the words, brackets and figures "sub-section (1) or sub-section (3) of section 14" shall be substituted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint.
86. Substitution of new section for section 14. - For section 14 of the Customs Act, the following section Shall be substituted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, namely :-
14. Valuation of goods for purposes of assessment. - (1) For the purposes of the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force, the value of the imported goods and export goods shall be the transaction value of such goods, as determined in accordance with the rules made in this behalf :-
Provided that such transaction value in the case of imported goods shall include, in addition to the price Actually paid or payable for the goods when sold for export to India, any amount that the buyer is liable to pay for costs and services, including commissions and brokerage, assists, engineering, design work, royalties and licence fees, costs of transportation to the place of importation, insurance, and handling charges:
Provided further that such price shall be calculated with reference to the rate of exchange as in force on The date on which a bill of entry is presented under section 46, or a shipping bill or bill of export, as the case may be, is presented under section 50.
(2) Notwithstanding anything contained in sub-section (I), if the Board is satisfied that it is necessary or expedient so to do, it may, by notification in the Official Gazette, fix tariff values for any class of imported goods or export goods, having regard to the trend of value of such or like goods, and where any such tariff values are fixed, the duty shall be chargeable with reference to such tariff value.
(3) Where there is no sale of imported goods or export goods, or where the transaction value of the goods is not determinable, the value of such goods shall be determined in accordance with the rules made in this behalf.