IMPORT DUTIES & TAXES CALCULATION - COMMERCIAL

 IMPORT DUTIES & TAXES CALCULATION - Instead of depending on others/C&F Agents:

Learn here AV, CD, SD, RD, VAT, AT, AIT, TTI, ITC, etc. step by step:

FORMULA
1st need to calculate Assessable Value (AV):

AV = CIF + Landing Charge (L/C)

Where, CIF Value = Cost + Freight (C&F) + Insurance

Let's go:

Step 1. CIF Calculation:
✓ Cost # FOB Value
✓ Freight Charges # Actual or if unknown, then 20% on FOB
✓ Insurance Cost # obtained from Insurance Cover Note as Total Premium mandatory for shipment by Letter of Credit, or if no Insurance opened/unknown, then 1% on C&F value is usually this is for industrial import.

Thus, CIF:
A. C&F = Cost + Freight
B. Insurance/I = 1% = 1% on C&F
C. CIF = C&F + I

Step 2. L/C: CIF*1%
(1% on CIF value)

Step 3. AV = CIF + L/C

Step 4. Conversion into BDT

EXAMPLE
For a certain import, let FOB Value = USD 80 & known freight charge = USD 20

Step 1.
A. C&F Cost =$(80 + 20)=100
B. Insurance Cost 1% = $ 1
i.e.1% on C&F/100 or actual as per marine cover note
C. CIF Cost = $100 + 1 = 101(C&F + I)

Step 2.
D. L/C = $1.01 (i.e. 1% on CIF/101)

Step 3.
E. AV = CIF + L/C = 101 + 1.01
= $102.01

Step 4. Conversion into BDT
F. AV = $102.01 * 84.95 =8666