Section 45Part 4 — INCIDENCE AND COLLECTION OF DUTY AND PACKAGE TAX
Calculation of value
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The value of any imported goods shall be taken to be the normal price, which is the price which they would fetch at the time when they are entered for home use (or, if they are not so entered, at the time of importation) on a sale in the open market between a buyer and seller independent of each other.
The normal price of imported goods shall be determined on the following assumptions —
that the goods are treated as having been delivered to the buyer at the port or place of importation;
that the seller will bear freight, insurance, commission and all other costs, charges and expenses incidental to the sale and the delivery of the goods at the port or place, except buying commission not exceeding five per cent of the total value which is shown to the satisfaction of Customs and Border Control to have been paid to agents; and
that the buyer will bear any duty or tax payable in the Islands and other post-importation charges.
A sale in the open market between buyer and seller independent of each other pre-supposes —
that the price is the whole consideration;
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 the seller) and the buyer (or any person associated in business with the buyer) other than the relationship created by the sale of the goods in question; and
that no part of the proceeds of the subsequent resale, use or disposal of the goods will accrue either directly or indirectly to the seller or any person associated in business with the seller.
Where the goods to be valued —
are manufactured in accordance with any patented invention or are goods to which registered design has been applied; or
are imported with a foreign trade mark, or are imported for sale (whether or not after further manufacture) under a foreign trade mark, the normal price shall be determined on the assumption that the price covers the right to use the patent, design or trade mark in respect of the goods.
Two persons shall 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, 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.
For the purpose of determining the price of goods under subsection (2) which are uninsured, there shall be substituted for the cost of insurance a notional insurance cost equal to one per cent of the cost and freight cost of such goods.
Discounts and similar reductions in invoiced values will be deductible from the value for duty only if it can be shown to the satisfaction of Customs and Border Control that the deductions —
are available to any buyer purchasing similar goods from the same supplier;
do not result from a special relationship between buyer and seller; and
do not, in any case, exceed twenty per cent of the invoiced value.
The Director may, for the purposes of this section, require an importer or other person concerned with the importation of goods to furnish, in such form as may be required, such information as is necessary for a proper valuation of the goods, and to produce any books of accounts or documents of whatever nature relating to the purchase, importation or sale of the goods by that person.