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Do customs duties ever apply to the resale price of merchandise after it has been imported and made available on the local market? Do they apply to the market
by Gormo 16y ago
Do customs duties ever apply to the resale price of merchandise after it has been imported and made available on the local market? Do they apply to the market value of finished goods when importing their unfinished components?
The way the law is enforced is very much a function of what it says. I'm fairly confident in assuming that the customs authority didn't arbitrarily make up the "auction goods with duties unpaid for 30 days" rule, and that it was fully rooted in applicable law.
- Retric 16y agoFirst off, I don't know Indian law, but normally import tax is based on wholesale value. AKA One ton of steel is worth X, pay Y% of X. Now, there are plenty of loopholes in the law but, just as you can get a speeding ticket while traveling below the posted speed limit in a blizzard the basic rules are usually still enforceable. The law may go to great detail about what how and why to post a given speed limit, but they are only guidelines. EX: A friend was given a speeding ticket by a cop who did not know how fast he was going AND did not know what the speeding limit was on that road. However, the Judge decided that the cop as an expert witness and he had to pay the fine. PS: You often see the same sorts of things in IRS audits, because you don’t get to just follow 95% of the rules.