WORLD TRADE G/VAL/N/1/ZAF
30August 1996
ORGANIZATION(96-3422)
Original: English Committee onCustoms Valuation
NOTIFICATIONS UNDER ARTICLE 22.2OFTHE AGREEMENT
ONIMPLEMENTATION OFARTICLE VIIOFTHE GENERAL
AGREEMENT ONTARIFFS AND TRADE 1994
SOUTH AFRICA
Thefollowing communication, dated 7August 1996, hasbeenreceived from thePermanent
Mission ofSouth Africa.
_______________
Ihavethehonour toattach South Africa 'snotification ofitslawsandregulations1interms
ofArticle 22.2oftheAgreement onImplementation ofArticle VIIoftheGATT 1994.
Annexure Acontains therelevant sections oftheCustoms andExcise Act(Act91of1964)
andAnnexure Bcontains therules relating tocustoms valuation.
Thisnotification replaces South Africa 'snotification oflegislation under theTokyo Round
CustomsValuationAgreement.Thereplytothe"checklistofissues"(VAL/2/Rev.1/Add.13),however,
remains valid.
1English only.G/VAL/N/1/ZAF
Page2
ANNEXURE A
Section:
4. General duties andpowers ofofficers:
4(3) Noofficer shalldisclose anyinformation relating toanyperson, firmorbusiness acquired
intheperformance ofhisduties, except:
(a) forthepurposes ofthisAct; or
(b) when required todosoasawitness inacourt oflaw; or
(c) totheCommissioner forInland Revenue oranyofficer intheOffice ofthe
Commissioner forInland Revenue designated bythatCommissioner, forthepurposes
ofanylawwiththeadministration ofwhich heischarged.
(Sub-s (3)substituted byS.2ofActNo.110of1979.
Paragraph (c)substituted byS.3(1) ofActNo.98of1980andbyS.2(a) ofActNo.84of1987).
Section:
107. Expenses oflanding, examination, weighing, analysis, etc.
107(2) Subject totheprovisions ofthisAct,theCommissioner shallnot,except onsuchconditions,
including conditions relating tosecurity, asmaybedetermined byhim,allow goods topass
from hiscontrol untiltheprovisions ofthisActoranylawrelating totheimportation or
exportationortransitcarriagethroughtheRepublicofgoods,havebeencompliedwithinrespect
ofsuchgoods, andtheState ortheCommissioner oranyofficer shallinnocasebeliable in
respect ofanyclaim arising outofthedetention ofgoods pending thedecision ofthe
Commissioner orforthecosts ofsuchdetention.
(Paragraph (a)substituted byS.6ofActNo.89of1983andbyS.67ofActNo.45of1995.)G/VAL/N/1/ZAF
Page3
S.65 S.65
CHAPTER IX
Value
65. Value forcustoms dutypurposes.
(1) Subject totheprovisions ofthisAct,thevalue forcustoms dutypurposes ofanyimported goods
shall, atthetimeofentry forhome consumption, bethetransaction value thereof, within the
meaning ofSection 66.
(2) Ifsuchvalue ofanyimported goods ofasingle denomination is:
(a) inexcess ofonerand, suchvalue shallforthepurpose ofassessing theamount ofduty
payable, becalculated tothenearest rand, anamount of50cents being regarded as
lessthanonehalfofonerand;
(b) lessthanonerand, suchvalue shallbecalculated asonerand.
(3) Unless thecontext otherwise indicates, anyreference inthisActtocustoms value ortovalue
fordutypurposes, inrelation toimported goods, shallbedeemed tobeareference tovalue
forcustoms dutypurposes.
(4) (a) Ifthetransaction value ofanyimported goods cannot beascertained interms of
Section 66orhasbeenincorrectly ascertained bytheimporter, theCommissioner may
determine avalue, which shall, subject toarightofappeal tothecourt, bedeemed
tobethevalue forcustoms dutypurposes ofthegoods.
[Paragraph (a)substituted byS.48ofActNo.45of1995.]
(b) Theacceptance byanyofficer ofabillofentry ortherelease ofanygoods asentered
shallnotbedeemed tobeanysuchdetermination.
(c) Anydetermination somade shallbedeemed tobecorrect forthepurposes ofthisAct,
andanyamount dueinterms ofanysuchdetermination shallremain payable aslong
assuchdetermination remains inforce.
(5) TheCommissioner maywhenever hedeems itexpedient amend orwithdraw anysuch
determination andmake anewdetermination witheffect from:
(a) thedateoffirstentry ofthegoods inquestion;
(b) thedateofthedetermination made under subsection (4);
(c) thedateofsuchnewdetermination; or
(d) thedateofsuchamendment.
(6) (a) Anappeal against anysuchdetermination shalllietothedivision oftheSupreme Court
ofSouth Africa having jurisdiction tohearappeals intheareawherein thedetermination
wasmade, orthegoods inquestion were entered forhome consumption.
(b) Such appeal shall beprosecuted within aperiod of90daysfrom thedateofthe
determination.G/VAL/N/1/ZAF
Page4
s.65 s.65
(7) Savewhere:
(a) adetermination hasbeenmade under subsection (4)(a) or(5);or
(b) anyfalsedeclaration ismade forthepurposes ofsubsection (4)or(5)
there shallbenoliability foranyunderpayment ofcustoms dutyonanygoods, where such
underpayment isduetotheacceptance ofabillofentry bearing anincorrect customs value,
afteraperiod oftwoyears from thedateofentry ofsuchgoods.
(7A) Notwithstandingtheprovisionsofsubsection(7),anydeterminationmadeundersubsection(4)(a)
following upon anInspection ofthebooks ordocuments ofanyimporter shallbedeemed to
havecome intooperation inrespect ofthegoods inquestion entered forcustoms purposes,
twoyears prior tothedateonwhich theinspection commenced.
[Sub-s.(7A) inserted bySection 8(a)ofActNo.52of1986.]
(8) (a) Notwithstanding theprovisions ofsubsections (1)and(4),thevalue forthepurposes
ofthedutyspecified inSection BofPart2ofSchedule No.1shall, inrespect of
imported goods (other thangoods entered interms ofitem412.18 ofSchedule No.4),
bethetransaction value thereof plus15percentofsuchvalue, plusanynon-rebated
customs dutypayable interms ofPart1andSection AofPart2ofSchedule No.1
onsuchgoods, butexcluding thedutyspecified inthesaidSection BofPart2of
Schedule No.1onsuchgoods.
[Paragraph (a)substituted byS.8(b)ofActNo.52of1986.]
(b) Theprovisions ofsubsection (1)(a) and(b)or(3)ofSection 69shallmutatis mutandis
apply totheascertainment ordetermination ofthevalue forthepurposes oftheduty
specified inSection BofPart2ofSchedule No.1inrespect ofanyimported goods
entered interms ofitem412.18 ofSchedule No.4.
[Sub-s. (8)substituted byS.8ofActNo.101of1985
andS.9ofActNo.68of1989.]
(9) Forthepurposes ofSections 66and67,unless thecontext otherwise indicates:
"buying commission", inrelation toimported goods, means anyfeepaidbyanimporter to
hisagent forrepresenting himabroad inthepurchase ofandthepayment forthegoods;
"goods ofthesame classorkind", inrelation toimported goods, means goods produced by
aparticular industry orindustry sector inthecountry from which theimported goods were
exported, andfalling within thesame group orrange ofgoods astheimported goods;
"identical goods", inrelation toimported goods, means goods produced inthesame country
andbythesame oradifferent producer astheimported goods andwhich arethesame inall
respects,includingphysicalcharacteristics,qualityandreputationbutexcludingminordifferences
inappearance, astheimported goods, butdoesnotinclude goods incorporating orreflecting
engineering, development work, artwork, design work, plans orsketches undertaken inthe
Republic;G/VAL/N/1/ZAF
Page5
ss.65-66 ss.65-66
"price actually paidorpayable", inrelation toimported goods, means thetotalpayment made
ortobemade, either directly orindirectly, bythebuyer toorforthebenefit oftheseller for
thegoods, butdoesnotinclude dividends orother payments passing from thebuyer tothe
seller which donotdirectly relate tothegoods;
"similar goods", inrelation toimported goods, means goods produced inthesame country
andbythesame oradifferent producer astheimported goods andwhich although notalike
inallrespects totheimported goods have, withdueregard totheirquality andreputation and
theexistence ofatrade mark, likecharacteristics andlikecomponent materials which enable
themtobeemployed forthesame purposes andtobecommercially interchangeable, butdoes
notinclude goods incorporating orreflecting engineering, development work, artwork, design
work, plans orsketches undertaken intheRepublic.
[S.65 amended byS.5ofActNo.85of1968,
byS.21ofActNo.105of1969, byS.20ofActNo.112of1977,
byS.5ofActNo.93of1978 andbyS.7ofActNo.110of1979 and
substituted byS.13(1) ofActNo.86of1982.]
66. Transaction value
(1) Subject totheprovisions ofthisActthetransaction value ofanyimported goods shallbethe
price actually paidorpayable forthegoods when soldforexport totheRepublic, adjusted
interms ofSection 67,provided:
(a) there arenorestrictions astothedisposal oruseofthegoods bythebuyer other than
restrictions which:
(i) areimposed orrequired bylaw;
(ii) limitthegeographical areainwhich thegoods mayberesold; or
(iii) donotsubstantially affect thevalue ofthegoods;
(b) thesaleorsuchprice ofthegoods isnotsubject toanytermorcondition forwhich
avalue cannot bedetermined;
(c) nopartoftheproceeds ofanydisposal, useorsubsequent resale ofthegoods bythe
buyer willaccrue directly orindirectly totheseller, unless anappropriate adjustment
canbemade interms ofSection 67;
(d) subject tosubsection (3),theseller andthebuyer arenotrelated within themeaning
ofsubsection (2)(a).G/VAL/N/1/ZAF
Page6
s.66 s.66
(2) (a) Forthepurposes ofsubsection (1)(d), twopersons shallbedeemed toberelated only
if:
(i) theyareofficers ordirectors ofoneanother 'sbusinesses;
(ii) theyarelegally recognized partners inbusiness;
(iii) theoneisemployed bytheother;
(iv) anyperson directly orindirectly owns, controls orholds fivepercentormore
oftheequity share capital ofbothofthem;
(v) oneofthem directly orindirectly controls theother;
(vi) bothofthem aredirectly orindirectly controlled byathirdperson;
(vii) together theydirectly orindirectly control athirdperson; or
(viii) theyaremembers ofthesame family.
(b) Persons whoareassociated inbusiness withoneanother inthattheoneisthesoleagent,
soledistributor orsoleconcessionary, however described, oftheother shallbedeemed
toberelated onlyiftheyaresodeemed interms ofparagraph (a).
(c) Every importer ofgoods which arenotexempted byruleshall, when making entry
ofthegoods, declare, inthemanner prescribed byrule,whether ornotheisrelated
tothesupplier ofthegoods within themeaning ofthissection.
[Paragraph (c)substituted byS.49(a) ofActNo.45of1995.]
(3) Notwithstanding theprovisions ofsubsection (1)(d), thefactthatabuyer andaseller arerelated
within themeaning ofsubsection (2)(a) shallnotinitself beaground fornotaccepting the
transaction value, where:
(a) suchrelationship didnotinfluence theprice paidorpayable; or
[Paragraph (a)substituted byS.49(b) ofActNo.45of1995.]
(b) theimporter proves thatthetransaction value closely approximates tooneofthe
following values, namely:
(i) thetransaction value ofidentical orsimilar goods soldatcomparable trade
andquantity levels tounrelated buyers intheRepublic atorabout thesame
timeasthegoods tobevalued;G/VAL/N/1/ZAF
Page7
s.66 s.66
(ii) thevalue, ascertained interms ofsubsection (7),ofidentical orsimilar goods
imported intotheRepublic atorabout thesametimeasthegoods tobevalued;
(iii) thevalue, ascertained interms ofsubsection (8),ofidentical orsimilar goods
imported intotheRepublic atorabout thesametimeasthegoods tobevalued.
[Paragraph (b)amended byS.49(c) ofActNo.45of1995.]
(4) (a) Ifthetransaction value ofanyimported goods cannot beascertained interms of
subsection (1),itshallbetheprice actually paidorpayable foridentical goods ina
saleforexport totheRepublic atthesame commercial levelandinsubstantially the
same quantity andexported atorabout thesame timeasthegoods tobevalued,
adjusted,withreferencetodifferencesinanycostsandchargesreferredtoinSection67,
onaccount ofdifferences indistances andmodes oftransport totheportorplace of
export.
(b) Where nosuchsaleisfound, asaleofidentical imported goods ateither adifferent
commercial orquantity level, oratadifferent commercial level andquantity level,
adjusted tocompensate forsuchdifferences, shallbeusedtoascertain thetransaction
value.
(c) Ifintheapplication ofthissubsection more thanonetransaction value isascertained,
thelowest suchvalue shallbethetransaction value ofthegoods tobevalued.
(5) (a) Ifthetransaction value ofanyimported goods cannot beascertained interms of
subsection (4),Itshallbetheprice actually paidorpayable forsimilar goods inasale
forexport totheRepublic atthesame commercial levelandinsubstantially thesame
quantity andexported atorabout thesame timeasthegoods tobevalued, adjusted,
withreference todifferences inanycosts andcharges referred toinSection 67,on
account ofdifferences indistances andmodes oftransport totheportorplaceofexport.
(b) Where nosuchsaleisfound, theprovisions ofparagraphs (b)and(c)ofsubsection (4)
shallmutatis mutandis apply.
(6) Ifthetransaction value ofanyimported goods cannot beascertained interms ofsubsection (5),
Itshallbeascertained interms ofsubsection (7)or,when itcannot beascertained interms
ofsubsection (7),itshallbeascertained interms ofsubsection (8);Provided thatattherequest,
inwriting, oftheimporter concerned theorder ofapplication ofsubsections (7)and(8)shall
bereversed.G/VAL/N/1/ZAF
Page8
s.66 s.66
(7) (a) Iftheimported goods oridentical orsimilar imported goods aresoldintheRepublic
inthesame condition asthatinwhich theywerewhen imported, thetransaction value
oftheimported goods interms ofthissubsection shallbebased ontheunitprice at
whichtheimportedgoodsoridenticalorsimilarimportedgoodsaresoldintheRepublic
inthegreatest aggregate quantity, atorabout thetimeofimportation ofthegoods
tobevalued, bytheimporters thereof topersons notrelated tothem, subject to
deductions for:
(i) commissions usually paidoragreed tobepaidoradditions usually made for
profit andgeneral expenses, including thedirect andindirect costsofmarketing
thegoods relative tosalesintheRepublic ofimported goods ofthesame kind
orclassatthegoods tobevalued, irrespective ofthecountry ofexportation;
(ii) thecostoftransportationandthecostofloading,unloading,handling,insurance
andassociated costsincidental tothetransportation ofgoods fromtheportor
place ofexport inthecountry ofexportation totheimporter 'spremises inthe
Republic; and
(iii) anyduties ortaxespaidorpayable intheRepublic byreason oftheimportation
ofthegoods orsaleofthegoods within theRepublic.
(b) Ifneither theimported goods noridentical norsimilar imported goods aresoldator
about thetimeofimportation ofthegoods tobevalued, thetransaction value ofthe
imported goods interms ofthissubsection shall, subject totheprovisions of
paragraph (a),bebased ontheunitprice atwhich theimported goods oridentical or
similar imported goods aresoldintheRepublic inthesame condition asthatinwhich
theywerewhen imported, attheearliest dateaftertheimportation ofthegoods tobe
valued, butnotlaterthan90daysaftersuchimportation.
(c) Ifneither theimported goods noridentical norsimilar imported goods aresoldinthe
Republic inthesamecondition asthatinwhich theywereimported, then,iftheimporter
sorequests inwriting, thetransaction value oftheimported goods interms ofthis
subsection shallbebased ontheunitprice atwhich theimported goods, afterfurther
processing, aresoldinthegreatest aggregate quantity topersons intheRepublic not
related tothesellers ofsuchgoods, dueallowance being made forthevalue added
bysuchprocessing andthedeductions referred toinparagraph (a).
(8) Thetransaction value ofanyimported goods interms ofthissubsection shallbebased ona
computed value, computed bymeans ofinformation supplied bytheproducer andconsisting
ofthesumof:
(a) thecostorvalue ofmaterials andmanufacture orother processing inproducing the
goods;
(b) thecostof:
(i) packing, including thatofthelabour ormaterials concerned; andG/VAL/N/1/ZAF
Page9
s.66 s.66
(ii) containers which aredealtwithasbeing forcustoms purposes onewiththe
goods inquestion;
(c) thevalue, apportioned totheimported goods asdeemed appropriate bythe
Commissioner, withdueregard toanyrelevant request bytheimporter, ofanyofthe
following goods andservices ifsupplied directly orindirectly bytheimporter free
ofcharge oratreduced cost,foruseinconnection withtheproduction, andsalefor
export oftheimported goods, insofarassuchvalue hasnotbeenincluded intheprice
actually paidorpayable, namely:
(i) materials, components, partsandsimilar articles forming partoftheimported
goods;
(ii) tools, dies,moulds andsimilar articles usedintheproduction oftheimported
goods;
(iii) materials consumed intheproduction oftheimported goods;
(iv) engineering, development work, artwork, design work, plans andsketches
undertaken elsewhere thanintheRepublic andnecessary fortheproduction
oftheimported goods;
(d) thecostoftransportation, loading, unloading, handling andinsurance andassociated
costs incidental todelivery oftheimported goods attheportorplace ofexport inthe
country ofexportation andplacing those goods onboard shiporonanyvehicle, or
inacontainer asdefined inSection 1(2), atthatportorplace;
[Paragraph (d)substituted byS.5ofActNo.69of1988 byS.10(a) of
ActNo.68of1989 andbyS.26(1)(a) ofActNo.59of1990.]
(e) anamount forprofit andgeneral expenses equal tothatgenerally applicable insales
ofgoods ofthesameclassorkindastheimported goods, which aremade byproducers
inthecountry ofexportation.
(9) Where thetransaction value ofanyimported goods cannot beascertained interms ofthe
provisions ofsubsection (8),theCommissioner maydetermine suchvalue onthebasis ofa
previous determination or,where there isnoprevious determination, bysuchapplication as
hemaydeem reasonable ofanymanner ofascertaining thetransaction value interms of
subsection (1),(4),(5),(7)or(8),butnosuchdetermination shallbebased on:
(a) theselling price intheRepublic ofgoods produced intheRepublic;G/VAL/N/1/ZAF
Page10
ss.66-67 ss.66-67
(b) asystem which provides fortheacceptance forcustoms purposes ofthehigher oftwo
alternative values;
(c) theselling price ofgoods onthedomestic market ofthecountry oforigin orof
exportation oftheimported goods;
(d) thecostofproduction, other thancomputed values which havebeendetermined for
identical orsimilar goods inaccordance withsubsection (8);
(e) theprice ofthegoods forexport toacountry other thantheRepublic;
(f) asystem ofminimum customs values; or
(g) arbitrary orfictitious values.
(10) Forthepurposes ofsubsection (7)(a)(ii) or(8)(d), goods which areexported totheRepublic
from anycountry butpassintransit through another country shall, subject toanyconditions
which may beprescribed byrule, bedeemed tohave been exported direct from the
first-mentioned country.
[Sub-s.(1) substituted byS.49(d) ofActNo.45of1995.]
(11) Forthepurposes ofsubsection (7)(a)(ii) or(8)(d), theportorplace ofexport referred totherein
shallbetheplace inthecountry ofexportation where thegoods inquestion:
(a) arepacked inacontainer asdefined inSection 1(2)of,ifnotsopacked inacontainer,
placed onboard shiporonanyvehicle which conveys themfromoracross theborder
ofthatcountry; or
[Paragraph (a)substituted byS.10(b) ofActNo.68of1989.]
(b) iftheyareships orvehicles moving under theirownpower, finally leave thatcountry
fortheRepublic.
[Sub-s.(11) substituted byS.26(1)(b) ofActNo.59of1990.
S.66substituted byS.21ofActNo.112of1977, amended byS.8of
ActNo.110of1979 assubstituted byS.14(1) ofActNo.86of1982.]
67. Adjustments toprice actually paidorpayable
(1) Inascertaining thetransaction value ofanyimported goods interms ofSection 66(1), there
shallbeadded totheprice actually paidorpayable forthegoods
(a) totheextent thattheyareincurred bythebuyer butarenotincluded inthepriceactually
paidorpayable:
(i)anycommission other thanabuying commission;G/VAL/N/1/ZAF
Page11
s.67 s.67
(ii) brokerage;
(iii) thecostofpacking, including thatofthelabour andmaterials concerned;
(iv) thecostofcontainers which aredealtwithasbeing forcustoms purposes one
withthegoods;
(b) thevalue, apportioned totheimported goods asdeemed appropriate bythe
Commissioner, ofanyofthefollowing goods andservices ifsupplied directly or
indirectly bytheimporter freeofcharge oratreduced cost,foruseinconnection with
theproduction andsaleforexport oftheimported goods, totheextent thatsuchvalue
hasnotbeenincluded intheprice actually paidorpayable, namely:
(i) materials, components, parts andsimilar articles forming partofthegoods;
(ii) tools, dies,moulds andsimilar articles usedintheproduction ofthegoods;
(iii) materials consumed intheproduction ofthegoods;
(iv) engineering, development work, artwork, design work, plans andsketches
undertaken elsewhere thanintheRepublic andnecessary fortheproduction
ofthegoods;
(c) royalties andlicence feesinrespect oftheimported goods, including payments for
patents, trade marks andcopyright andfortherighttodistribute orresell thegoods,
duebythebuyer, directly orindirectly, asacondition ofsaleofthegoods forexport
totheRepublic, totheextent thatsuchroyalties andfeesarenotincluded intheprice
actually paidorpayable, butexcluding charges fortherighttoreproduce theimported
goods intheRepublic;
(d) thevalue ofanypartoftheproceeds ofanysubsequent resale, disposal oruseofthe
imported goods thataccrues directly orindirectly totheseller; and
(e) totheextent thattheyarenotincluded intheprice actually paidorpayable forthe
goods, thecostoftransportation, loading, unloading, handling andinsurance and
associated costs incidental todelivery ofthegoods attheportorplace ofexport in
thecountry ofexportation andplacing those goods onboard shiporonanyvehicle,
orinacontainer asdefined inSection 1(2), atthatportorplace.
[Paragraph (e)substituted byS.6ofActNo.69of1988,
byS.11(a) ofActNo.68of1989 andby
S.27(1)(a) ofActNo.59of1990.]G/VAL/N/1/ZAF
Page12
s.67 s.67
(2) Inascertaining thetransaction value ofanyimported goods interms ofSection 66(1), there
shallbededucted fromtheprice actually paidorpayable forthegoods, totheextent thatthey
areincluded therein, amounts equal to:
(a) thecostoftransportation andthecostofloading, unloading, handling, insurance and
associated costs incidental tothetransportation ofthegoods from theportorplace
ofexport inthecountry ofexportation totheportorplace ofimportation inthe
Republic;
(b) anyofthefollowing costs, charges orexpenses ifidentified separately fromthebalance
oftheprice actually paidorpayable forthegoods, namely:
(i) anyexpenditureincurredfortheconstruction,erection,assemblyormaintenance
of,ortechnical assistance provided inrespect of,thegoods aftertheyare
imported;
(ii) thecostoftransport andinsurance ofthegoods within theRepublic;
(iii) anyduties ortaxes paidorpayable byreason oftheimportation ofthegoods
orsaleofthegoods intheRepublic;
(iv) anydutyortaxapplicable inthecountry ofexportation fromwhich thegoods
havebeenorwillberelieved bywayofrefund, drawback, rebate orremission;
(v) buying commission;
(vi) interest charged inrespect oftheprice payable forthegoods;
(vii) anycharge fortherighttoreproduce theimported goods intheRepublic.
(3) Forthepurposes ofsubsection (1)(e) or(2)(a), goods which areexported totheRepublic from
anycountry butpassintransit through another country shall, subject tosuchconditions as
maybeprescribed byrule,bedeemed tohavebeenexported direct fromthefirst-mentioned
country.
[Sub-s.(3) substituted byS.49(d) ofActNo.45of1995.]
(4) Forthepurposes ofsubsection (1)(e) or(2)(a), theportorplace ofexport referred totherein
shallbetheplace inthecountry ofexportation where thegoods inquestion:
(a) arepacked inacontainer asdefined inSection 1(2)or,ifnotsopacked inacontainer,
placed onboard shiporonanyvehicle which conveys themfromoracross theborder
ofthatcountry; or
[Paragraph (a)substituted byS.11(b) ofActNo.68of1989.]G/VAL/N/1/ZAF
Page13
ss.67-69 ss.67-69
(b) iftheyareships orvehicles moving under theirownpower, finally leave thatcountry
fortheRepublic.
[Sub-s.(4) substituted byS.27(1)(b) ofActNo.59of1990.
S.67substituted byS.6ofActNo.85of1968,
repealed byS.22ofActNo.112of1977 and
inserted byS.15(1) ofActNo.86of1982.]
68. ......
[S.68 repealed byS.22ofActNo.112of1977.]
69. Value forexcise dutypurposes
(1) (a) Forthepurpose ofassessing theexcise dutyonanygoods manufactured intheRepublic
andspecified inSection BofPart2ofSchedule No.1,thevalue thereof shall, subject
totheprovisions ofthissection, betaken tobethefullandfinalmarket price (before
deduction ofanydiscounts other thancashdiscounts) atwhich, atthetimeofsale,
suchorsimilar goods arefreely offered forsale,forconsumption intheRepublic,
forpurposes oftrade intheprincipal markets oftheRepublic intheordinary course
oftrade, intheusual wholesale quantities andinthecondition andtheusual packing
ready forsaleintheretailtrade, toanymerchant wholesaler intheRepublic notdeemed
toberelated asspecified inSection 66(2)(a) under fullycompetitive conditions, plus
thecostofpacking andpackages andallother expenses incidental toplacing thegoods
onanyvehicle fordelivery tothepurchaser, plusanynon-rebated excise dutypayable
interms ofSection AofPart2ofSchedule No.1onsuchgoods, butexcluding the
non-rebated excise dutypayable interms ofSection BofPart2ofSchedule No.1
oranyvalue-added taxpayable onsuchgoods: Provided thattheCommissioner may,
where suchgoods arenotsoldtosuchmerchant wholesalers intheRepublic orare
sosoldinquantities which heconsiders tobeinsignificant inrelation tothetotal
quantities ofsuchgoods soldintheRepublic, regard anyother classofpurchaser of
suchgoods assuchamerchant wholesaler andmaymake suchadjustment totheprice
charged bythemanufacturer tosuchclass ofpurchaser asheconsiders reasonable,
having regard tothewholesale functions taken overbysuchmanufacturer andsuch
class ofpurchaser andtosuchother factors relating tosuchprice ashemaydeem
relevant.
[Sub-s.(1) amended byS.3(a) and(b)ofActNo.105of1992
andbyS.6(a) ofAct98of1993.]
(b) ......
[Paragraph (b)deleted byS.3(b) ofActNo.105of1992.]
(c) Forthepurposes ofthissubsection theCommissioner mayspecify:
(i) thequantity which shallbedeemed tobetheusual wholesale quantity;G/VAL/N/1/ZAF
Page14
s.69 s.69
(ii) thepacking which shallbedeemed tobetheusual packing ready forsalein
theretail trade;
(iii) thecostofpacking orpackages oranyother expenses incidental toplacing
thegoods onanyvehicle.
[S.par.(iii) substituted byS.6(b) ofActNo.98of1993.]
(2) (a) (i) For thepurpose ofassessing theexcise dutyonanygoods specified in
Section AofPart2ofSchedule No.1(other thangoods specified in
Items 117.01.10 and117.05 to117.30), thevalue thereof shallbetheprice
paidorpayable forsuchgoods when soldforhome consumption intheordinary
course oftrade, intheusual trade packing, where applicable, toanybuyers
notdeemed toberelated asspecified inSection 66(2)(a), plusanynon-rebated
excise dutypayable interms ofSection BofPart2ofSchedule No.1,but
excluding thenon-rebated excise dutypayable interms ofSection AofPart2
ofSchedule No.1,fuellevyoranyvalue-added taxpayable onsuchgoods.
(ii) Forthepurpose ofassessing theexcise duty onanygoods specified in
items 117.01.10 and117.05 to117.30 ofSection AofPart2ofSchedule No.
1,thevalue thereof shallbetheprice paidorpayable forsuchgoods when
soldforhome consumption intheordinary course oftrade toanybuyers not
deemed toberelated asspecified inSection 66(2)(a), plusanynon-rebated
excise dutypayable interms ofSection BofPart2ofSchedule No.1,but
excluding anyvalue-added taxpayable onsuchgoods.
[Paragraph (2)(a)(i) and(ii)substituted byS.1ofActNo.111of1991
andbyS.3(c) ofActNo.105of1992.]
(b) Forthepurpose ofparagraph (a)"price paidorpayable", means thetotalpayment
made ortobemade, either directly orindirectly, bythebuyer toorforthebenefit
oftheseller forthegoods, butdoesnotinclude dividends orother payments passing
from thebuyer totheseller which donotdirectly relate tothegoods.
(3) Ifintheopinion oftheCommissioner goods aresoldorotherwise disposed ofunder such
conditions thatthevalue thereof cannot beascertained interms ofsubsection (1)(a) or(2),
asthecasemaybe,theCommissioner maydetermine avalue, which shall, subject totheright
ofappeal tothecourt, bedeemed tobecorrect forthepurposes ofthisAct,andanyamount
dueinterms ofanysuchdetermination shallremain payable aslongassuchdetermination
remains inforce.
[Sub-s.(3) substituted byS.6(c) ofActNo.98of1993.]
(4) TheCommissioner maywhenever hedeems itexpedient amend orwithdraw anysuch
determination andmake anewdetermination witheffect from:
(a) thedateoffirstentry ofthegoods inquestion;G/VAL/N/1/ZAF
Page15
ss.69-72 ss.69-72
(b) thedateofthedetermination made under subsection (3);
(c) thedateofsuchnewdetermination; or
(d) thedateofsuchamendment.
(5) (a) Anappeal against anysuchdetermination shalllietothedivision oftheSupreme Court
ofSouth Africa having jurisdiction tohearappeals intheareainwhich thedetermination
wasmade, orthegoods inquestion were entered forhome consumption.
(b) Such appeal shall beprosecuted within aperiod of90daysfrom thedateofthe
determination.
[S.69substituted byS.12(1) ofActNo.68of1989.]
70. ......
[S.70 repealed byS.28ofActNo.59of1990.]
Value ofcertain specified goods
(1) Thevalue fordutypurposes ofanygoods imported intotheRepublic excustoms warehouses
orexbonded warehouses within thedistrict ofMaputo shallbecalculated ordetermined in
accordance withthisChapter asifsuchgoods wereimported directly intotheRepublic from
theterritory whence theywere exported toMaputo.
[Sub-s.(1) substituted byS.10ofActNo.105of1976.]
(2) Where anymotor vehicle isimported byanatural person forhisownuseandnotforsale,
theCommissioner may, notwithstanding theprovisions ofSection 65(1) and(4)butwithdue
regard totheprovisions ofSection 66,determine avalue which shall, subject toaright of
appeal tothecourt, mutatis mutandis inaccordance withtheprovisions ofSection 65(6), be
deemed tobethevalue fordutypurposes ofsuchvehicle: Provided thatwhere anynatural
person whowastheowner ofandhasusedsuchmotor vehicle inanyterritory outside the
Republic, imports suchvehicle intotheRepublic, from aterritory other thantheterritory in
which itwasproduced ormanufactured, forhisownuse,andnotforsale,theCommissioner
maydetermine thevalue fordutypurposes ofsuchvehicle asifitwere imported intothe
Republic from theterritory inwhich itwasproduced ormanufactured.
[Sub-s.(2) amended byS.5ofActNo.89of1984 andbyS.4ofActNo.105of1992.]
72. Value ofgoods exported
(a) Forthepurposes ofthisAct,thevalue ofanygoods exported fromtheRepublic shall
betheprice ofthose goods freeonboard attheplace ofdispatch from theRepublic,
which value shallbedeclared onthebillofentry export.G/VAL/N/1/ZAF
Page16
ss.72-74 ss.72-74
(b) Ifthere isnosuchfreeonboard price, thevalue determined bytheCommissioner
shallberegarded asthevalue forthesaidpurposes.
(c) Ifthevalue ofanyexported goods ofasingle denomination is,according tothe
provisions ofthissection:
(i) inexcess ofonerandandincludes afraction ofarand, suchvalue shallbe
calculated tothenearest rand, anamount inexcess of50cents being regarded
asonerand;
(ii) lessthanonerand, suchvalue shallbecalculated asonerand.
[Paragraph (c)added byS.11ofActNo.105of1976 and
substituted byS.11ofActNo.98of1980.]
73. Currency conversion
(1) When thevalue oforthepricepaidorpayable foranyimported goods isexpressed inaforeign
currency, itshall, forthepurpose ofcalculating thecustoms value thereof, beconverted into
thecurrency oftheRepublic attheselling rateatthedateofshipment ofthegoods asdetermined
bytheCommissioner, inconsultation withtheSouth African Reserve Bank, orifnosuchrate
isdetermined forsuchdate, thelatest ratedetermined before thatdateshallbeused.
(2) Forthepurposes ofsubsection (1)thedateofshipment of:
(a) non-containerized goods shallbethedateofthebilloflading, airway bill,consignment
noteorsuchother document astheCommissioner mayrequire;
(b) containerized goods shallbethedateonwhich thecontainer istaken onboard ship
asendorsed onthebilloflading orarrival notification or,ifimported otherwise than
bysea,thedateoftheairway bill,consignment noteorsuchother document asthe
Commissioner mayrequire.
[S.73 substituted byS.24ofActNo.112of1977, byS.9ofActNo.110
of1979 andS.51ofActNo.45of1995.]
74. Value ofgoods notliable toadvalorem duty.
(1) Subject totheprovisions ofsubsection (2),thecustoms value ofanyimported goods shallbe
declared bytheimporter onentry ofsuchgoods.
[Subsection (1)substituted byS.25ofActNo.112of1977 andbyS.17(1)
ofActNo.86of1982.]
(2) TheCommissioner maybyruleexempt, totheextent specified intherules, anyclassorkind
ofsuchgoods oranysuchgoods towhich circumstances sospecified apply, fromtheprovisions
ofsubsection (1).
[Sub-s.(2) substituted byS.52ofActNo.45of1995.]G/VAL/N/1/ZAF
Page17
s.74A s.74A
74A. Interpretation ofSections 65,66and67
(1) Theinterpretation ofSections 65,66and67shallbesubject totheAgreement concluded at
Geneva on12April 1979 andknown astheAgreement onImplementation ofArticle VIIof
theGeneral Agreement onTariffs andTrade, theInterpretative Notes thereto, theAdvisory
Opinions, Commentaries andExplanatory Notes, CaseStudies andStudies issued under the
saidAgreement onImplementation ofArticle VIIoftheGeneral Agreement onTariffs and
Trade.
[Sub-s.(1) substituted byS.10(a) ofActNo.101of1985.]
(2) (a) TheCommissioner shallobtain andkeepinhisoffice twocopies ofsuchAgreement,
Interpretative Notes, Advisory Opinions, Commentaries andExplanatory Notes, Case
Studies andStudies andshalleffect thereto anyamendment thereof ofwhich heis
notified bytheSecretariat oftheCustoms Cooperation Council, Brussels.
(b) Whenever inanylegalproceedings anyquestion arises astothecontents ofthesaid
Agreement, oranysuch Interpretative Note, Advisory Opinion, Commentary,
Explanatory Note, Case Study orStudy (hereinafter inthisparagraph referred toas
therelevant document), orastothedateupon which anyamendment thereof was
effected thereto interms ofparagraph (a),acopy oftherelevant document, orif
amended ascontemplated inparagraph (a),acopy oftherelevant document asso
amended, shall, unless thecontrary isproved, beaccepted assufficient evidence of
thecontents thereof oroftheeffective dateofanyamendment thereof, asthecasemay
be.
[Sub-s.(2) substituted byS.10(b) ofActNo.101of1985.]
(3) Theprovisions ofsubsection (1)shallnotderogate from theinterpretation which would but
forthatsubsection begiven toSection 65,66or67.
[S.74A Inserted byS.26ofActNo.112of1977 and
substituted byS.18(1) ofActNo.86of1982.]G/VAL/N/1/ZAF
Page18
ANNEXURE B
CHAPTER IX
Value
Rules forSection 65oftheAct
Furnishing ofinformation
65.01 Anyimporter shall, ifrequested inwriting, furnish onaform DA55 orinanyother manner
specified intherequest, fullparticulars asmaybedeemed necessary todetermine thecustoms
value ofgoods imported byhim. Theimporter concerned shallfurnish suchinformation not
laterthan30daysfrom thedateofsuchrequest.
Value determination
65.02 Anumber shallbeallocated toanydetermination inrespect ofacustoms value andtheimporter
shallbenotified inwriting ofsuchdetermination anditsnumber. Theimporter shall, inrespect
offuture consignments fromthesame supplier, insert suchvalue determination number inthe
field"Additional Information" onthebillofentry.
65.03 Ifanyimporter sorequests, heshallbeadvised inwriting ofthemethod usedindetermining
thecustoms value ofhisgoods.
Rules forSection 66oftheAct
Exemptions from declaration
66.01 Thefollowing classes orkinds ofgoods areexempted fromtherequirements ofSection 66(2)(c):
(a) goodsimportedbyanimporterfromasinglesupplierandwhichdonotexceedR10,000
invalue perconsignment;
(b) goods which arenotliable toanadvalorem duty, ortoanadvalorem dutyinaddition
to,orasanalternative toanyother duty;
(c) goods cleared under theprovisions ofparagraphs (i)to(iv)oftheproviso to
Section 38(1)(a); and
(d) goods entered under rebate ofdutyprovided forinItems 403.01, 405.01, 405.02,
405.03/37.05 to405.03/90.10, 405.04, 405.05/92.00, 405.05/00.00/02.00, 405.09,
406.00 to408.01, 408.03, 410.03/27.10 to411.00/85.01, 412.02 to412.04, 412.06,
412.08 to412.16, 412.20 to460.06/28.35, 460.06/38.17 to460.16/85.00 andallItems
ofPart3ofSchedule No.4.
Related persons
66.02 Thetestsprovided forinSection 66(3)(b) shallbeusedonrequest oftheimporter andfor
comparative purposes only.G/VAL/N/1/ZAF
Page19
Valuation codeonbillofentry
66.03 Forthepurpose ofSection 66(2)(c) anyimporter whois:
(a) related tothesupplier ofthegoods shallsoindicate, inthefield"Valuation Code"
onthebillofentry, byinserting theletter "R";and
(b) notrelated tothesupplier ofthegoods shallsoindicate inthefield"Valuation Code"
onthebillofentry, byinserting theletter "N".
66.04 Every importer ofgoods exempted interms ofRule66.01 shallindicate suchexemption by
inserting theletter "E"inthefield"Valuation Code" onthebillofentry.
66.05 Thevaluation methods prescribed inSections 66(1), 66(4), 66(5), 66(7), 66(8) and66(9) of
theAct,shallbeknown asValuation Methods 1to6,respectively, andevery importer shall
indicate which Valuation Method isapplicable tohisgoods byinserting inthefield"Valuation
Code" onthebillofentry aftertheletter "R"or"N"asrequired byRule66.03 theappropriate
method number: Provided thatimporters oftheclasses orkinds ofgoods enumerated in
Rule66.01 areexempted from thisrequirement.