The law stipulates that customs valuation shall, except in specified circumstances, be based on the actual price paid or payable for the goods to be valued, which is generally shown on the invoice. This price, plus adjustments for certain elements listed in paragraph 8 of the schedule to Section 80 of the Customs Act, equals the transaction value, which constitutes the first and most important method of valuation referred to in the Agreement.
The price actually paid or payable is the total payment made or to be made by the buyer to or for the benefit of the seller for the imported goods, and includes all payments 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.
Discounts
The treatment of discounts in determining a transaction value under Paragraph 3 of the Schedule to Section 80 of the Customs Act, allows for the net price paid or payable to be an acceptable base for Transaction value unless the price is affected by a relationship as defined in Paragraph 1 (4) of the Schedule to the Customs Act or is subject to an unacceptable condition.
Cash Discounts
When prior to the valuation of imported goods, a buyer has availed himself of a cash discount offered by the seller, the cash discount should be allowed in determining the transaction value provided that the invoice states the type of discount and it is distinguished on the invoice. Where the price for the imported goods has not been paid at the time of importation and the cash discount will be effected after importation then such discount will not be considered in determining the Transaction value.
Quantity Discounts
Quantity discounts granted in view of the overall volume of the goods purchased and effected prior to importation is allowed in determining the Transaction value of the imported goods provided the invoice states the type of discount and it is shown separate on the invoice.
Trade Discounts
Trade discounts granted by the seller to the buyer on the imported goods and effected prior to importation of the goods is allowed in determining the Transaction value provided the invoice states the type of discount and it is shown separate on the invoice.
The law stipulates that customs valuation shall, except in specified circumstances, be based on the actual price paid or payable for the goods to be valued, which is generally shown on the invoice. This price, plus adjustments for certain elements listed in paragraph 8 of the schedule to Section 80 of the Customs Act, equals the transaction value, which constitutes the first and most important method of valuation referred to in the Agreement.
The price actually paid or payable is the total payment made or to be made by the buyer to or for the benefit of the seller for the imported goods, and includes all payments 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.
Discounts
The treatment of discounts in determining a transaction value under Paragraph 3 of the Schedule to Section 80 of the Customs Act, allows for the net price paid or payable to be an acceptable base for Transaction value unless the price is affected by a relationship as defined in Paragraph 1 (4) of the Schedule to the Customs Act or is subject to an unacceptable condition.
Cash Discounts
When prior to the valuation of imported goods, a buyer has availed himself of a cash discount offered by the seller, the cash discount should be allowed in determining the transaction value provided that the invoice states the type of discount and it is distinguished on the invoice. Where the price for the imported goods has not been paid at the time of importation and the cash discount will be effected after importation then such discount will not be considered in determining the Transaction value.
Quantity Discounts
Quantity discounts granted in view of the overall volume of the goods purchased and effected prior to importation is allowed in determining the Transaction value of the imported goods provided the invoice states the type of discount and it is shown separate on the invoice.
Trade Discounts
Trade discounts granted by the seller to the buyer on the imported goods and effected prior to importation of the goods is allowed in determining the Transaction value provided the invoice states the type of discount and it is shown separate on the invoice.
Sample Discounts
This type of discount is granted on goods for use as samples, or for other similar promotional items, and is also allowable in calculating the customs value.
Contingency Discounts
These are normally granted by a seller when the buyer has purchased a large quantity of goods over a given period. The discount relates to all importation in the period and not to one importation. A contingency discount is not allowable for custom duty purposes when it is claimed in full on one importation.
Breakage Allowance
This is a discount given by suppliers to compensate the buyer for any items which may be broken whilst in transit. The discount is allowable provided it does not exceed 2% of the total amount being imported. An allowance given for damage to a previous consignment is not taken into account for the current importation.
This type of discount is granted on goods for use as samples, or for other similar promotional items, and is also allowable in calculating the customs value.
Contingency Discounts
These are normally granted by a seller when the buyer has purchased a large quantity of goods over a given period. The discount relates to all importation in the period and not to one importation. A contingency discount is not allowable for custom duty purposes when it is claimed in full on one importation.
Breakage Allowance
This is a discount given by suppliers to compensate the buyer for any items which may be broken whilst in transit. The discount is allowable provided it does not exceed 2% of the total amount being imported. An allowance given for damage to a previous consignment is not taken into account for the current importation.