Advance Ruling on Valuation of Arista’s Service Spare Parts

In re Arista Networks Limited (CAAR Delhi)

In the case of In re Arista Networks Limited, the Customs Authority for Advance Rulings (CAAR) Delhi addressed the issue of customs valuation for service parts imported by Arista under its Service Support Operations (SSO). The applicant clarified that the imported parts were new, not refurbished, exempting them from Foreign Trade Policy (FTP) restrictions. Since there was no transaction value due to the free replacement policy, CAAR ruled that the customs value could not be determined under Rule 3 of the Customs Valuation Rules, 2

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