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Annex 23 to the Implementing Regulation, entitled ‘Interpretative notes on customs value’, contains, inter alia, the interpretative notes with regard to Article 29(2) and (3) and Article 31(1) of the Community Customs Code and Article 143(1)(e) of that regulation: Article 29(2) 1. Paragraphs 2(a) and (b) provide different means of establishing the acceptability of a transaction value. 2. Paragraph 2(a) provides that where the buyer and the seller are related, the circumstances surrounding the sale shall be examined and the transaction value shall be accepted as the customs value provided that the relationship did not influence the price. It is not intended that there should be an examination of the circumstances in all cases where the buyer and the seller are related. Such examination will only be required where there are doubts about the acceptability of the price. Where the customs authorities have no doubts about the acceptability of the price, it should be accepted without requesting further information from the declarant. For example, the customs authorities may have previously examined the relationship, or it may already have detailed information concerning the buyer and the seller, and may already be satisfied from such examination or information that the relationship did not influence the price. 3. Where the customs authorities are unable to accept the transaction value without further inquiry, they should give the declarant an opportunity to supply such further detailed information as may be necessary to enable it to examine the circumstances surrounding the sale, in this context, the customs authorities should be prepared to examine relevant aspects of the transaction, including the way in which the buyer and seller organise their commercial relations and the way in which the price in question was arrived at, in order to determine whether the relationship influenced the price. Where it can be shown that the buyer and seller, although related under the provisions of Article 143 of this Regulation, buy from and sell to each other as if they were not related, this would demonstrate that the price had not been influenced by the relationship. As an example of this, if the price had been settled in a manner consistent with the normal pricing practices of the industry in question or with the way the seller settles prices for sales to buyers who are not related to him, this would demonstrate that the price had not been influenced by the relationship. As a further example, where it is shown that the price is adequate to ensure recovery of all costs plus a profit which is representative of the firm’s overall profit realised over a representative period of time (e.g. on an annual basis) in sales of goods of the same class or kind, this would demonstrate that the price had not been influenced. 4. Paragraph 2(b) provides an opportunity for the declarant to demonstrate that the transaction value closely approximates to a “test” value previously accepted by the customs authorities and is therefore acceptable under the provisions of Article 29. Where a test under paragraph 2(b) is met, it is not necessary to examine the question of influence under paragraph 2(a). If the customs authorities already have sufficient information to be satisfied, without further detailed inquiries, that one of the tests provided in paragraph 2(b) has been met, there is no reason for them to require the declarant to demonstrate that the test can be met. Article 29(2)(b) A number of factors must be taken into consideration in determining whether one value “closely approximates” to another value. These factors include the nature of the imported goods, the nature of the industry itself, the season in which the goods are imported, and, whether the difference in values is commercially significant. Since these factors may vary from case to case, it would be impossible to apply a uniform standard such as a fixed percentage, in each case. For example, a small difference in value in a case involving one type of goods could be unacceptable while a large difference in a case involving another type of goods might be acceptable in determining whether the transaction value closely approximates to the “test” values set forth in Article 29(2)(b). … … Article 31(1) 1. Customs values determined under the provisions of Article 31(1) should, to the greatest extent possible, be based on previously determined customs values. 2. The methods of valuation to be employed under Article 31(1) should be those laid down in Articles 29 and 30(2), but a reasonable flexibility in the application of such methods would be in conformity with the aims and provisions of Article 31(1). 3. Some examples of reasonable flexibility are as follows: … (b) similar goods – the requirement that the similar goods should be exported at or about the same time as the goods being valued could be flexibly interpreted; similar imported goods produced in a country other than the country of exportation of the goods being valued could be the basis for customs valuation; customs values of similar imported goods already determined under the provisions of Articles 30(2)(c) and (d) could be used; … … … Article 143(1)(e) One person shall be deemed to control another when the former is legally or operationally in a position to exercise restraint or direction over the latter.’