What constitutes sale for the purpose Customs valuation?
Ans: The ACV contains no definition of sale. However, the term sale has to be interpreted in the widest sense, keeping in view the provisions contained in Articles 1 and 8 of the ACV. The Technical Committee on Customs Valuation has prepared a list of cases that would not be deemed to constitute sales meeting the requirements and conditions of Article 1 and 8 of the Code. In such cases, one of the methods other than the transaction value method has to be applied proceeding sequentially. The list is not exhaustive: (i) Free consignments: Where transactions do not involve payment of any price, they cannot be regarded as sales. Examples of such transactions are gifts, samples, promotional items. (ii) Goods imported on consignment: Under this arrangement the goods are imported not as a result of sale but for subsequent sale on the account of the supplier. As such, there is no sale the time of importation. Importation on consignment for subsequent auction sale is an example of such transact