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Circular No. 112/95
dated 31/10/95
 
F.No. 467/43/95-CUS-V
 
Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise & Customs, New Delhi
Subject : Toner Cartridges for Lazer Printers and Ink Cartridges for Ink Jet Printer - Indicative prices for Customs
               Valuation
 
        Representations have been received that there is a gross under-invoicing of toner for Photocopiers and toner cartridges of laser printers and ink cartridges of Ink Jet Printers.

        2.    Toner Cartridges for Laser Printers and Ink Cartridges for Ink Jet Printers:

            It has been informed that the toner cartridges for laser printers are being cleared at the basic minimum price of US $14 per cartridge while the actual import price in much more.
            One of the manufacturers, M/s Hewlett Packard India Ltd. have stated that toner cartridges for laser printers and ink jet cartridges are much more than mere reservoirs of toner powders
    or ink. These cartridges contain the entire entire electric circuitry plus in the case of Toner Cartridges for laser printers, these contain the photosensitive drum, corona unit, developer
    unit, cleaner blade, etc. Similarly, the jet cartridges contain a miniature oriened circuit which is embedded in the plastic body and has nozzles through which  the ink is forced out. A copy of their letter printers and ink cartridges for the ink jet printers is enclosed herewith for your information and guidance.

            A price list submitted by M/s H.P. (India) Ltd.. indicating the prices at which these products are being imported by them from their manufacturing units abroad is also enclosed  herewith. Their contention is that prices indicated by them are available to H.P. distributors worldwide. The H.P. dealers who procures those goods from the distributors add no their margin and those traders who are not authorised H.P. dealers buy from these dealers and their margins are also added to the product.

            Presuming a margin of 10% at each stage, the prices available in Singapore or Hong Kong when goods are purchased from H.P. dealers should be available at 10% higher price and if purchased from non-authorised dealers, the margin should be further in creased by another 10%. In case of purchase of retail/ small quantities, the margin would be still higher.

3.    Toners for Photocopiers :-
            Heavy under-invoicing in the import of toners for photocopiers has also been reported. Importers, especially the trader importers are involved in under- invoicing. It is reported that the minimum price of toners which are mainly acquired from chemicals manufactured in Japan should not be less than US $ 148 Kg. It is also brought to the notice that original equipment manufacturers are invoicing at proper prices which itself should provide the data for assessment of trader importers.
4.    Kindly ensure that the above information is kept in mind when the goods are assessed to duty. The prices calculated as above would be the bare minimum prices at which such goods could be procured. In cases, prices declared are higher or otherwise found to be higher, then, of course, the higher price should be taken for assessment. This letter may be circulated to all the concerned in order to ensure that there is no revenue loss on account of under-valuation.
Sd/-
(Vinay Chhabra)
Deputy Secretary to the Govt. of India