Fact Sheet 15 - Customs value of imported goods - New Zealand ...

CUSTOMS FACT SHEET 15
» the value of any materials,
components parts, and other
goods incorporated in the imported
goods for the purpose of repair
to, or refurbishment of, those goods
prior to export of the goods to
New Zealand, and the price paid
for the service of repair
or refurbishment
» costs of transportation and
insurance of, and the loading,
unloading, and handling charges etc
associated with the transportation of,
the imported goods until the goods
have left the country of export that
are paid or payable by the buyer to
the seller or for the seller’s benefit, as
a condition of the transaction.
However, if the following charges are
included in the price paid or payable
for the imported goods and the amount
is identified separately, the charges
can be deducted when establishing the
transaction value:
» the costs of transportation and
insurance of, and the loading,
unloading, and handling charges etc
associated with the transportation of,
the imported goods from the time
the goods have left the country of
export
» any reasonable cost, charge, or
expense that is incurred for the
construction, erection, assembly,
or maintenance of, or technical
assistance provided in respect of, the
goods after the goods are imported
into New Zealand
» any reasonable cost, charge, or
expense that is incurred in respect of
the transportation or insurance of
the goods within New Zealand
» any Customs duties or other taxes
payable in New Zealand by reason of
the importation or sale of the goods.
WHEN THE TRANSACTION VALUE
METHOD CANNOT BE USED
The acceptance of the transaction
value method as the applicable method
of valuation is subject to a number of
requirements. The main requirements
include:
» the imported goods must be subject
to a sale between a buyer and a seller
» the particular sale must be made
with a view to export the goods
to New Zealand
» there are no restrictions respecting
the disposition or use of the goods
by the buyer, other than restrictions
that:
› are imposed by law; or
› limit the geographic area in
which the goods may be resold;
or
› do not substantially affect the
value of the goods.
» the price paid or payable for the
goods has not been influenced by
any relationship between the buyer
and seller of the goods.
Where the imported goods have not
been sold for export to New Zealand,
or where the transaction value is not
acceptable as the Customs value because
the price paid or payable for the goods
is affected by certain conditions, the
Customs value of the goods cannot be
valued for Customs purposes using the
transaction value method. Examples
of such goods are - gifts, free samples,
goods imported on consignment, goods
imported by branches which are not
separate legal entities, goods imported
under a hire or leasing contract.
ALTERNATIVE METHODS OF
DETERMINING THE CUSTOMS VALUE
When imported goods cannot be valued
under the transaction value method,
the Customs value of the goods must
be determined using the first possible
method out of the five alternative
methods of valuation set out in clauses
4 to 8 of Schedule 2.
The alternative methods of valuation, in
sequential order of consideration, are:
» Transaction value of identical goods
(‘identical goods method’) — the
basis of the identical goods method
is to use the transaction value of
identical goods that had previously
been sold for export to New Zealand
as a benchmark to determine the
Customs value. This method would
generally be applicable if there
was a recent importation into
New Zealand of goods that are the
same in all respects as the goods
being valued
» Transaction value of similar goods
(‘similar goods method’) — the
basis of the similar goods method
is to use the transaction value of
similar goods that had previously
been sold for export to New Zealand
as a benchmark to determine the
Customs value. This method would
generally be applicable if there
was a recent importation into
New Zealand of goods that closely
resemble the goods being valued
» Deductive value — the basis of the
deductive value method is to take
the resale price of the goods in
New Zealand and reduce it to what
is effectively the Customs value that
would likely have existed between
a buyer and seller had there been a
sale for export to New Zealand in
the first place. This method would
generally be applicable in situations
where the imported goods are sold
in New Zealand within 90 days of
their importation
Customs Value of Imported Goods Issue date August 2012 2