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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