Commonwealth Numbered Acts

CUSTOMS AMENDMENT ACT 1976 No. 41 of 1976 - SCHEDULE

SCHEDULE
Section 6

SCHEDULE ADDED TO THE PRINCIPAL ACT

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SCHEDULE VII
Section 154

PART I

ANNEX I TO THE CONVENTION
DEFINITION OF VALUE

ARTICLE I.

(1) For the purposes of levying ad valorem duties of customs, the value of any
goods imported for home use shall be taken to be the normal price, that is to
say, the price which they would fetch at the time when the duty becomes
payable on a sale in the open market between a buyer and a seller independent
of each other.

(2) The normal price of any imported goods shall be determined on the
following assumptions:

   (a)  that the goods are delivered to the buyer at the port or place of
        introduction into the country of importation;

   (b)  that the seller bears all costs, charges and expenses incidental to
        the sale and to the delivery of the goods at the port or place of
        introduction, which are hence included in the normal price;

   (c)  that the buyer bears any duties or taxes applicable in the country of
        importation, which are hence not included in the normal price.

ARTICLE II.

(1) A sale in the open market between a buyer and a seller independent of each
other pre-supposes:

   (a)  that the price is the sole consideration;

   (b)  that the price is not influenced by any commercial, financial or other
        relationship, whether by contract or otherwise, between the seller or
        any person associated in business with him and the buyer or any person
        associated in business with him, other than the relationship created
        by the sale itself;

   (c)  that no part of the proceeds of any subsequent resale, other disposal
        or use of the goods will accrue, either directly or indirectly, to the
        seller or any person associated in business with him.

(2) Two persons shall be deemed to be associated in business with one another
if, whether directly or indirectly, either of them has any interest in the
business or property of the other or both have a common interest in any
business or property or some third person has an interest in the business or
property of both of them.

ARTICLE III.

When the goods to be valued

   (a)  are manufactured in accordance with any patented invention or are
        goods to which any protected design has been applied; or

   (b)  are imported under a foreign trade mark; or

   (c)  are imported for sale, other disposal or use under a foreign trade
        mark, the normal price shall be determined on the assumption that it
        includes the value of the right to use the patent, design or trade
        mark in respect of the goods.

PART II

ANNEX II TO THE CONVENTION

INTERPRETATIVE NOTES
TO THE DEFINITION OF VALUE

Addendum to Article I

NOTE 1.

The time when the duty becomes payable, referred to in paragraph (1) of
Article I shall be determined in accordance with the legislation of each
country and may be, for example, the time at which the goods declaration for
home use is duly lodged or registered, the time of payment of customs duty or
the time of release of the goods.

NOTE 2.

The ''costs, charges and expenses'' mentioned in Article I, paragraph (2) (b)
include, inter alia, any of the following: - carriage and freight; -
insurance; - commission; - brokerage; - costs, charges and expenses of drawing
up outside the country of importation documents incidental to the introduction
of the goods into the country of importation, including consular fees; -
duties and taxes applicable outside the country of importation except those
from which the goods have been exempted or have been or will be relieved by
means of refund; - cost of containers excluding those which are treated as
separate articles for the purpose of levying duties of customs; cost of
packing (whether for labour, materials or otherwise); - loading charges.

NOTE 3.

The normal price shall be determined on the assumption that the sale is a sale
of the quantity to be valued.

NOTE 4.

Where the determination of the value or of the price paid or payable depends
upon factors which are expressed in a currency other than that of the country
of importation, the foreign currency shall be converted into the currency of
the importing country at the official rate of exchange of that country.

NOTE 5.

The object of the Definition of Value is to make it possible in all cases to
calculate the duties payable on the basis of the price at which imported goods
are freely available to any buyer on a sale in the open market at the port or
place of introduction into the country of importation. It is a concept for
general use and is applicable whether or not the goods are in fact imported
under a contract of sale, and whatever the terms of that contract.

But the application of the Definition implies an enquiry into current prices
at the time of valuation. In practice, when imported goods are the subject of
a bona fide sale, the price paid or payable on that sale can generally be
considered as a valid indication of the normal price mentioned in the
Definition. This being so, the price paid or payable can reasonably be used as
a basis for valuation, and Customs Administrations are recommended to accept
it as the value of the goods in question, subject:

   (a)  to proper safeguards aimed at preventing evasion of duty by means of
        fictitious or colourable contracts or prices; and

   (b)  to such adjustments of that price as may be considered necessary on
        account of circumstances of the sale which differ from those envisaged
        in the Definition of Value.

Adjustment under paragraph (b) above may in particular be required with
reference to freight and other expenses dealt with in paragraph (2) of Article
I and Note 2 of the Addendum to Article I, or with reference to discounts or
other reductions in price granted in favour of sole agents or sole
concessionaires, or to any abnormal discount or any other reduction from the
ordinary competitive price.

Addendum to Article III

NOTE 1.

The provisions of Article III do not restrict the provisions of Articles I and
II.

NOTE 2.

The provisions of Article III may also be applied to goods imported for sale,
other disposal or use, after further manufacture, under a foreign trade mark.

NOTE 3.

A trade mark shall be treated as a foreign trade mark if it is the mark of:

   (a)  any person by whom the goods to be valued have been grown, produced,
        manufactured, offered for sale or otherwise dealt with outside the
        country of importation; or

   (b)  any person associated in business with any person referred to in (a)
        above; or

   (c)  any person whose rights in the mark are restricted by an agreement
        with any person referred to in (a) or (b) above.

General addendum

It is recommended that the concept of value expressed by the Definition and
these Interpretative Notes be employed for the valuing of all goods subject to
customs declaration, including duty-free goods and goods liable to specific
customs duties.
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