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Investigation Report No.59 of 2023 dated 30.11.2023 issued to M/s. Electronic Arts Games India Pvt Ltd,Hyderabad

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12/8/23, 2:02 PM Email https://email.gov.in/h/printmessage?id=C:-54747&tz=Asia/Kolkata&xim=1 1/2 From : Commissioner Customs Export Mumbai I <comcusexp- mum1@gov.in>

Subject : Fwd: Investigation Report No.59 of 2023 dated 30.11.2023

issued to M/s. M/s. Electronic Arts Games India Pvt Ltd, Hyderabad To : CRU, EXPORT, NCH cru-exportmcz1@gov.in, Rajesh Kothari rajesh.kothari69@gov.in, Umesh kadam admnx-nchm1@gov.in Email CRU, EXPORT, NCH Fwd: Investigation Report No.59 of 2023 dated 30.11.2023 issued to M/s. M/s. Electronic Arts Games India Pvt Ltd, Hyderabad Fri, Dec 08, 2023 11:33 AM 2 attachments From: svbchennai3@gmail.com To: "DG VAL" directorate.valuation@dov.gov.in, svbcustomsbacc@gmail.com, "Dinesh Damodaran" szu.valuation@gov.in, "chennai import office" chennai-importoffice@gov.in, pcommr7acc-cuschn@gov.in, "DGARM DELHI" dgarm-cbec@gov.in, custtech2016@gmail.com, "Goa Customs Commissionerate" commr-cusgoa@nic.in, "Vasanthagesan Murugesan" vasanth.irs2009@gov.in, "Commissioner" commr@cochincustoms.gov.in, "PrincipalCommissioner CustomHouseVisakhapatnam" prcomm1-cusvzg@gov.in, "cus kpport" cus.kpport@gmail.com, "CCU Customs Ahmedabad Zone" ccu-cusamd@nic.in, "customhouse customhouse" <cus-ahmd- guj@nic.in>, "CCP Jamnagar" commr-custjmr@nic.in, "Kandla Commissionerate" <commr- cuskandla@nic.in>, "COMMISSIONER MUNDRA" commr-cusmundra@nic.in, "AHMEDABADAPPEAL AHMEDABADAPPEAL" commrappl-cusamd@nic.in, "CCU Customs Bengaluru Zone" ccu-cusblr@nic.in, "Principal Commissioner of Customs, Bengaluru Airport and Air Cargo Complex" commrapacc-cusblr@nic.in, "Commissionerate of Customs Bangalore" commr-citycusblr@nic.in, "MANGALORE MANGALORE" <commr-

Principal Commissioner of Customs, Bengaluru Airport and Air Cargo Complex" commrapacc-cusblr@nic.in, "Commissionerate of Customs Bangalore" commr-citycusblr@nic.in, "MANGALORE MANGALORE" <commr- cusmnglr@nic.in>, "COMMISSIONER AUDIT" chennaicus-audit@gov.in, "SUJATHA RAO G U" aircusappl-chennai@gov.in, "ARUN KUMAR SHARMA" cusappl2-chennai@gov.in, "CCU Customs Delhi Zone" ccu-cusdel@nic.in, "Zubair Riaz" ccgen-delhi@gov.in, "DELHIAIRCARGO Import DELHIAIRCARGO Import" commraccimp-cusdel@nic.in, "Sanjeeb Kumar Mishra" imp.icdtkd@gov.in, "DELHIPPGotherICDs DELHIPPGotherICDs" commricdppg-cusdel@gov.in, "Shobhit Jain" ccaudit.del@gov.in, "DELHICUSTOMSAPPEAL DELHICUSTOMSAPPEAL" commrappl-cusdel@nic.in, "CCU Customs Prev. Delhi Zone" cccpdz-cbec@nic.in, "DELHI PREV DELHI PREV" commrprev-cusdel@nic.in, "Customs Ldh" customs.ldh@gov.in, "COMMISSIONER CUSTOMS PREVENTIVE AMRITSAR" commr-cusasr@nic.in, "Customs Preventive Commissionerate Jodhpur" commr-cusjdpr@gov.in, "CCU Customs Kolkata Zone" <ccu- cuskoa@nic.in>, "Prashant Kumar Rohit" kolcus-airport@gov.in, "NIMA PAKHRIN" kolcus-port@gov.in, "CUSTOMS PREVENTIVE WB" commrprev-cuswb@nic.in, "CCU Customs Mumbai Zone I" ccu-cusmum1@nic.in, "pr.ccgeneral" pr.cc-general@gov.in, "Import I CRU" import-1nch@gov.in, "Tejas D Koli" commr.import2@gov.in, "Commissioner Customs Export Mumbai I" comcusexp-mum1@gov.in, "Audit Commissionerate Mumbai Zone I" audit-commr.cusz1mum@gov.in, "CCU Customs

1nch@gov.in>, "Tejas D Koli" commr.import2@gov.in, "Commissioner Customs Export Mumbai I" comcusexp-mum1@gov.in, "Audit Commissionerate Mumbai Zone I" audit-commr.cusz1mum@gov.in, "CCU Customs

12/8/23, 2:02 PM Email https://email.gov.in/h/printmessage?id=C:-54747&tz=Asia/Kolkata&xim=1 2/2 Mumbai Zone II" ccu-cusmum2@nic.in, "Commissioner NS GEN JNCH" <commr- nsgen@gov.in>, "Dinesh Kumar Fuldiya" ns1-jnch@gov.in, "Sanjeev Kumar Singh" commr-ns2@gov.in, "Ashwini Kumar" commr-ns3@gov.in, "D S GARBYAL" <commr- ns5@gov.in>, "Audit JNCH" audit-jnch@gov.in, "CCU Customs Mumbai Zone III" cczone3@mumbaicustoms3.gov.in, "Airport Special Cargo Mumbai" apsc.mumbai@gov.in, "Import Commissioner" import.acc@gov.in, "Commissioner Export Air Cargo Complex Mumbai" commr-cus4mum3@nic.in, "Commissioner General Air Cargo Complex Mumbai" commr-cus5mum3@nic.in, "MUMBAI Preventive MUMBAI Preventive" commrprev-cusmum@nic.in, "CCU Customs Preventive Patna Zone" <ccu- cuspatna@nic.in>, "Cus Patna" cuspatna@nic.in, adcpv@commissionercustomslucknow.gov.in, "CCU Customs Prev. Trichy Zone" <ccuprev- custrichy@nic.in>, "Custom House Tuticorin" commr-custuticorin@nic.in, "TRICHYCUS(PRV) TRICHYCUS(PRV)" commrprev-custrichy@nic.in, "Commissioner Customs P LKO" ccp-lko@gov.in, "ASHU BHARDWAJ" adc.ccplko@gov.in Sent: Thursday, December 7, 2023 6:16:58 PM

Subject: Investigation Report No.59 of 2023 dated 30.11.2023 issued to M/s. M/s. Electronic

Arts Games India Pvt Ltd, Hyderabad Investigation Report No.59/2023 dated 30/11/2023 and intimation Report issued to M/s.Electronic Arts Games India Pvt Ltd, Hyderabad  by SVB, Section Chennai - III Commissionerate is attached herewith for reference Regds, Appraiser, SVB, Chennai. document-63.pdf 130 KB  document-64.pdf 84 KB

धान आयुसीमाशु क का कायालय, चेई – III OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS, CHENNAI-III सीमाशु क भवन60 , ,राजाजीसालै,चेई600001- CUSTOMS HOUSE, 60, RAJAJI SALAI, CHENNAI – 600001 दूरभाष: 044-25221968 , फै स: 044 25242425 Phone:044- 25221968, Fax: 044 25242425 S50/55/2018-SVB(DOV0011635) Date:30-11-2023

IEC No- 0904011062

PAN number: AABCJ4279Q

GST Reg No: AABCJ4279QST001.

                 INVESTIGATION REPORT No. 59/2023.

Sub: Determination of assessable value of imports made by M/s. Electronic Arts Games India Pvt Ltd from their related foreign supplier(s) M/s. Electronic Arts Inc, USA & M/s. Electronic Arts, UK- Influence of relationship on Pricing Pattern–Issuance of Investigation Report for imports made in F.Y.

rom their related foreign supplier(s) M/s. Electronic Arts Inc, USA & M/s. Electronic Arts, UK- Influence of relationship on Pricing Pattern–Issuance of Investigation Report for imports made in F.Y. 2015-16, 2016-17, 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23 in terms of 2(2)(v) Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 –- Reg. Sl. No Investigation Recommendations 1 Relationship in terms of Rule 2(2)(v) of Customs Valuation Rules, 2007 The Importer and Foreign Supplier are related in terms of Rule 2(2)(v) of Customs Valuation Rules, 2007. 2 Acceptance or Rejection of transactional value of imported goods under Rule 3 of CVR, 2007 Transaction Value may be accepted in terms of Rule 3(3)(a) of the Customs Valuation Rules, 2007 as no evidence of influence on transaction value is found as per documents submitted. 3 Additions, if any, under Rule 10 (1) (c) There is no evidence of any payment over and above the invoice value of the GEN/INV/Misc/413/2023-SVB-O/O PR COMMR-CUS-PREV-CHENNAI I/1573317/2023

bmitted. 3 Additions, if any, under Rule 10 (1) (c) There is no evidence of any payment over and above the invoice value of the GEN/INV/Misc/413/2023-SVB-O/O PR COMMR-CUS-PREV-CHENNAI I/1573317/2023

to (e) of CVR 2007. imported goods to make any addition under the provisions of Rule 10 (1) (c) to (e) of the Customs Valuation Rules, 2007. BRIEF FACTS AND SUBMISSIONS

  1. M/s. Electronic Arts Games India Private Limited having its

registered office at Vega Block, 7th Floor, Ascendas IT Park, Plot No.17, Software Unit Layouts, Madhapur, Hyderabad - 500081 hereinafter called as the importer or the “INDIAN COMPANY”) approached Imports(Assessment), Air Cargo Complex, Hyderabad requesting for provisional assessment and referring the case to SVB. Subsequently, Pr. Commissioner of Customs, Hyderabad after due consideration of the preliminary findings, has directed for referring the matter to SVB, Chennai for further investigations and for provisional assessment as per Para-5 (a) of the Circular no. 05/2016-Customs dated 09.02.2016. 2. The Indian Company has submitted the following documents:  (i) Annexure-A.  (ii) Annexure-B .  (iii) IEC copy. (iv) Memorandum of Association. 3. The submissions made by the importer in Annexure-A & B and their letters are as follows: a. They are a private limited company and captive service provider and are engaged in the provision of IT and IT enabled services, primarily engaged in IT services like maintenance for ongoing live games/QA and testing of games. b.

mpany and captive service provider and are engaged in the provision of IT and IT enabled services, primarily engaged in IT services like maintenance for ongoing live games/QA and testing of games. b. The importer is a subsidiary company of parent company viz. Electronic Arts Inc. c.They are a bonafide importer with 100% EOU holding. d.They are importing certain goods for the development of software activities at their customs bonded warehouse from related parties.

DISCUSSIONS & FINDINGS 3 . M/s. Electronic Arts Games India Private Limited ('the Indian Company') is domiciled in India and incorporated under the provisions of Companies Act,1956. The importer/buyer is subsidiary company of parent company viz., Electronic Arts Inc(Foreign seller). The Foreign seller is primarily engaged in IT services like maintenance for ongoing live games/QA and testing of games and having registered office at Electronic Arts, 7700 West Parmer Lane, Building C, Suite 200, Austin (Parmer Lane), Texas 78729, USA; & Electronic Arts, 209, Redwood I/1573317/2023

testing of games and having registered office at Electronic Arts, 7700 West Parmer Lane, Building C, Suite 200, Austin (Parmer Lane), Texas 78729, USA; & Electronic Arts, 209, Redwood I/1573317/2023

Shores Parkway, Redwood City, CA 946065 & Electronic Arts, Onslow House, Onslow Street, Guildford, Surrey, GUI4TN, UK.

  1. The Main objective of the Indian Company as per the Memorandum

of Association is: (i) To carry on the business of developing, publishing and distributing application software for video games on any platform such as personal computers, games consoles or wireless devices, games, ring tones & images and related activities. (ii) To carry on Software Development, product development and software services, Testing, support and training and related activities related to Video Games on any Platform.

RELATIONSHIP: 5. Electronic Arts Games India Private Limited is a wholly owned subsidiary of Electronic Arts inc. Electronic Arts Inc, USA having shares 10,769 (99.99%) out of 10,770 shares of Electronic Arts Games India Private Limited. In view of the above submissions, it is evident that the supplier (Foreign seller- Electronic Arts Inc) and Electronic Arts Games India Private Limited are related in terms of Rule 2(2)(v) of Customs Valuation Rules, 2007.

                       TRANSACTION VALUE:

  1. The importer has made submission that S.No.3  of Annexure-B

that the goods they have been importing are usually prototype goods. Imports made by the importer has been obtained/verified from Advait data/EDI system for F.Y.

ubmission that S.No.3 of Annexure-B that the goods they have been importing are usually prototype goods. Imports made by the importer has been obtained/verified from Advait data/EDI system for F.Y. 2015-16, 2016-17, 2017-18, 2018-19, 2019- 20, 2020-21, 2021-22 & 2022-23. Import data for F.Y. 2015-16, 2016- 17, 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23 are enclosed in Annexure-I. Those goods which are of description of ‘R&D purpose’, ‘Prototype’ and “R&D prototype” alone are excluded from investigation as per 3.5(i) Board Circular No. 05/2016-Customs dated 09.02.2016 as samples and prototype imports from related supplier shall not be taken up for inquiries by SVB. Accordingly, the items of imports other than samples and prototypes are enclosed in Annexure-II. The main items of import are - (i) Gaming Unit With Accessories (47q-00049 - Microsoft Xbox Onedevkit S)Gaming Unit With Accessories (47q-00049 - Microsoft Xbox One) (ii) Apple Iphone 7 Plus-Handset Apple Iphone 7 Plus-Handset (iii) Dell Laptops (Model No: Dell E7270) (Bis.No: R-67000027) Dell Laptops (Model No: Dell E7270) (Bis.No: R-67000027) (iv) Hid Cards / Badges Hid Cards / Badges I/1573317/2023

hone 7 Plus-Handset (iii) Dell Laptops (Model No: Dell E7270) (Bis.No: R-67000027) Dell Laptops (Model No: Dell E7270) (Bis.No: R-67000027) (iv) Hid Cards / Badges Hid Cards / Badges I/1573317/2023

(v) Brothers Printer (Printer) Brothers Printer. (vi) Telepresence Table Microphone 20 (Microphone For Computer System (Microphone) Gifr - Telepresence Table Microphone 20 (Microphone For Comp (vii) Juniper Srx-300-Sys-Jb Firewall Juniper Srx-300-Sys-Jb Firewall (viii) Other Consumables- Poloshirt, Hoodie, Company Badges, Pen, Keyboard, Headset.

  1. On scrutinizing the imports of items description, it is observed that the goods are of customized in nature and for their own consumption. The importer has made submission vide S.No. 4.1 of Annexure-A that the importer is primarily engaged in providing IT services like maintenance for ongoing live games/QA and testing of games. Further, vide S.No. 4.3 of Annexure-A that they usually don’t enter into any agreement with their parent company(Foreign Seller), as the goods that are been imported are all prototypes and used internally at Electronic Arts Games India Private Limited.

  2. The importer has made submission vide S.No. 5.5 of Annexure-A

that the Cost of Bill of Material and Procurement of other goods and charges as per prevailing market value. The importer has made submission vide S.No. 5.6 of Annexure-A that the price at which the goods are shipped are at arms length price viz at a transfer pricing.

charges as per prevailing market value. The importer has made submission vide S.No. 5.6 of Annexure-A that the price at which the goods are shipped are at arms length price viz at a transfer pricing. In addition to that the importer has submitted form 3CEB (S.No.19) of income tax return for FY 2015-16,2016-17,2017-18 demonstrating arm’s length price under section 92 C (1) (f) of Income Tax Act, 1961. The importer has made submission vide S.No. 5.7 of Annexure-A that there is no consideration that is paid by Electronic Arts Games India Pvt Ltd, India to supplier - Electronic Arts Inc(Foreign seller) as the goods are normally been shipped to them on loan basis.

“Note to Rule 3(3) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007

  1. Rule 3(3)(a) and rule 3(3)(b) provide different means of establishing the acceptability of a transaction value.
  2. Rule 3(3)(a) provides that where the buyer and the seller are related, the circumstances surrounding the sale shall be examined and the transaction value shall be accepted as the value of imported goods provided that the relationship did not influence the price. It is not intended that there should be an examination of the circumstances in all cases where the buyer and the seller are related. Such examination will only be required where there are doubts about the acceptability of the price. Where the proper officer of customs has no doubts about the acceptability of the price, it should be accepted without requesting I/1573317/2023

there are doubts about the acceptability of the price. Where the proper officer of customs has no doubts about the acceptability of the price, it should be accepted without requesting I/1573317/2023

further information from the importer. For example, the proper officer of customs may have previously examined the relationship, or he may already have detailed information concerning the buyer and the seller, and may already be satisfied from such examination or information that the relationship did not influence the price. 3. Where the proper officer of customs is unable to accept the transaction value without further inquiry, he should give the importer an opportunity to supply such further detailed information as may be necessary to enable him to examine the circumstances surrounding the sale. In this context, the proper officer of customs should be prepared to examine relevant aspects of the transaction, including the way in which the buyer and seller organize their commercial relations and the way in which the price in question was arrived at, in order to determine whether the relationship influenced the price. Where it can be shown that the buyer and seller, although related under the provisions of rule 2(2), buy from and sell to each other as if they were not related, this would demonstrate that the price had not been influenced by the relationship.

er, although related under the provisions of rule 2(2), buy from and sell to each other as if they were not related, this would demonstrate that the price had not been influenced by the relationship. As an example of this, if the price had been settled in a manner consistent with the normal pricing practices of the industry in question or with the way the seller settles prices for sales to buyers who are not related to him, this would demonstrate that the price had not been influenced by the relationship. As a further example, where it is shown that the price is adequate to ensure recovery of all costs plus a profit which is representative of the firm"s overall profit realized over a representative period of time (e.g. on an annual basis) in sales of goods of the same class or kind, this would demonstrate that the price had not been influenced”

  1. From the above, it appears that the relationship does not have any

influence on the declared price of the imported goods and the transaction on imported goods with the foreign supplier are made on arm’s length basis. Hence, the declared price of the imported goods from the foreign supplier may be accepted as Transaction Value under Rule 3(3)(a) of the Customs valuation Rules, 2007.

  1. ADDITION UNDER RULE 10(1)(c) to (e) of CVR, 2007 On perusal of the Annexure-A & Income Tax Returns for F.Y.

Transaction Value under Rule 3(3)(a) of the Customs valuation Rules, 2007.

  1. ADDITION UNDER RULE 10(1)(c) to (e) of CVR, 2007 On perusal of the Annexure-A & Income Tax Returns for F.Y. 2015- 16,2016-17 & 2017-18, it is observed that the goods imported by the importer are not sold under any trademark/design, licensing/royalty agreement or patent owned or controlled by the seller of the goods or any other person, product manufactured by the importer using the imported goods is sold under a trade mark, design, licensing/royalty I/1573317/2023

agreement or patent owned or controlled by the seller of the goods or any other person. Further, the importer declared that no amount/ part of proceeds of the subsequent resale, disposal or use of the imported goods accrues, directly or indirectly to the seller, no other payments actually made or to be made as a condition of sale of the imported goods by the buyer to the seller, or by the buyer to a third party to satisfy an obligation of the seller and no amount paid or payable, directly or indirectly, to or on behalf of the seller of the imported goods in connection with the production of the imported goods. There is no flow back on account of transaction, neither is there any entry under column 17 or 20 of 3CEB filed with Income Tax Department for the year ending for F.Y. 2015-16,2016-17 & 2017-18, which relates to any payment in terms of royalty/ commission agreement with related/associate companies. In view of the above no addition under Rule 10(1)(c) to (e) of Customs Valuation Rules, 2007 is warranted. 11.

yment in terms of royalty/ commission agreement with related/associate companies. In view of the above no addition under Rule 10(1)(c) to (e) of Customs Valuation Rules, 2007 is warranted. 11. Conclusion: a. Relationship between the Importer and the foreign supplier: The Importer and Foreign Supplier are related in terms of Rule 2(2)(v) of Customs Valuation Rules, 2007. b) Acceptance or Rejection of transactional value of imported goods: Declared Transaction value of the goods imported from the related foreign supplier may be accepted in terms of Rule 3(3)(a) of the Customs Valuation Rules, 2007 with usual add-ons, if any, under Rule 10 (2) of CVR, 2007 supra. c) Payments other than invoice values of imported goods: In the absence of any flow back to the supplier in terms of royalty, trade mark fee or technical know-how fee, no addition under Rule (10)(1) (c to e) of Customs Valuation Rules, 2007 is warranted. 10. This investigation report is based solely on the basis of Importer’s information and declarations made in various written submissions to this SVB and applicable for imports made for F.Y. 2015-16, 2016-17, 2017- 18, 2018-19, 2019-20, 2020-21,2021-22 & 2022-23. This does not take into account any suppression or mis-declaration affecting the invoice value. 11. Import of the Goods from the related overseas suppliers may be assessed at invoice value adjusted in accordance with Rule 10 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 read with section 14 (1) of the Customs Act, 1962.

may be assessed at invoice value adjusted in accordance with Rule 10 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 read with section 14 (1) of the Customs Act, 1962. However, if any contemporary imports at higher prices are noticed or there exist reasons other than the influence of relationship to doubt the value, assessing groups may evaluate the value of the imported goods under appropriate provisions of the Customs Valuation (Determination of Value I/1573317/2023

of Imported Goods) Rules, 2007. 12. This is forwarded for necessary action as per Para 9.1 of CBEC Circular No-05/2016 dated - 09.02.2016. This is issued with the approval of the Principal Commissioner of Customs.

                                                 (K. BALAJI)
                                                Deputy Commissioner of Customs,
                                                            Special Valuation Branch

To The Asst./Deputy Commissioner of Customs(ImportAssessment/Group), Aircargo Complex, Hyderabad.

Copy To:

  1. The Joint Director (RMD), O/o The Additional Director General, Risk Management Division, Directorate of System, Central Board of Excise and Customs, No 13, Sir Vithaldas Thakersey Marg, Opp. Patkar Hall, New Marine Lines, Mumbai – 400020

nal Director General, Risk Management Division, Directorate of System, Central Board of Excise and Customs, No 13, Sir Vithaldas Thakersey Marg, Opp. Patkar Hall, New Marine Lines, Mumbai – 400020 2. The Joint/Additional Commissioner, Directorate General of Valuation, Southern Zonal Unit, Chennai – 600 001. 3. The Principal Commissioner/Commissioner of Customs (Chennai –I, II, III, IV, VII & VIII), Customs House, Chennai – 600 001 (for information) 3. The Deputy Commissioner of Customs (SVB), O/o The Commissioner of Customs, New Customs House, IGI Airport, New Delhi – 110 037 4. The Deputy Commissioner of Customs (SVB), O/o The Commissioner of Customs, Customs House, 15/7, Strand Road, Kolkata – 700001 5. The Deputy Commissioner of Customs(SVB), O/o The Commissioner of Customs, GATT Valuation Cell, New Customs House, Ballard Estate, Mumbai. 6. The Deputy Commissioner of Customs (SVB), O/o the Commissioner of Customs, MENZIES Aviation BOBBA Bangalore P Limited, CARGO Terminal, Bangalore International Airport, Devanahalli, I/1573317/2023

Bangalore – 560300 7. The other Customs formation (via email). 8. Office copy. I/1573317/2023

BOBBA Bangalore P Limited, CARGO Terminal, Bangalore International Airport, Devanahalli, I/1573317/2023

Bangalore – 560300 7. The other Customs formation (via email). 8. Office copy. I/1573317/2023

धान आयुसीमाशु क का कायालय, चेई – III OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS, CHENNAI-III सीमाशु क भवन60 , ,राजाजीसालै,चेई600001- CUSTOMS HOUSE, 60, RAJAJI SALAI, CHENNAI – 600001 दूरभाष: 044-25221968 , फै स: 044 25242425 Phone:044- 25221968, Fax: 044 25242425 S50/55/2018-SVB Date:30-11-2023 DIN 2 0 2 3 1 1 7 3 M Y 0 0 0 0 0 0 A 5 3 B To M/s. Electronic Arts Games (India) Private Limited, Vega Block, 7th Floor, Ascndas IT Park, plot no.17, Software Unit Layouts, Madhapur, Hyderabad.
Sir,

Sub: Determination of assessable value of imports made by M/s. Electronic Arts Games India Pvt Ltd from their related foreign supplier(s) M/s. Electronic Arts Inc, USA & M/s. Electronic Arts, UK- Influence of relationship on Pricing Pattern–Issuance of Investigation Report, in terms of 2(2)(v) Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 –- Reg. *** This is to inform you that the Investigation Report vide No.59/2023 has been issued on 30/11/2023.

alue of Imported Goods) Rules, 2007 –- Reg. *** This is to inform you that the Investigation Report vide No.59/2023 has been issued on 30/11/2023. The gist of the Investigation Report is as follows. Sl. No Investigation Recommendations 1 Relationship in terms of Rule 2(2)(v) of Customs Valuation Rules, 2007 The Importer and Foreign Supplier are related in terms of Rule 2(2)(v) of Customs Valuation Rules, 2007. 2 Acceptance or Transaction Value may be accepted in I/1573331/2023

Rejection of transactional value of imported goods under Rule 3 of CVR, 2007 terms of Rule 3(3)(a) of the Customs Valuation Rules, 2007 as no evidence of influence on transaction value is found as per documents submitted. 3 Additions, if any, under Rule 10 (1) (c) to (e) of CVR 2007. There is no evidence of any payment over and above the invoice value of the imported goods to make any addition under the provisions of Rule 10 (1) (c) to (e) of the Customs Valuation Rules, 2007.

Hence you may contact the concerned Assessment Group / Commissionerate for finalization of your provisional assessments.

                                              (K.

(K. BALAJI) Deputy Commissioner of Customs
Special Valuation Branch

I/1573331/2023

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