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    Valuation of Free-Of-Charge Goods: What Is A Customs Value and How Is It Calculated?

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    kishoresmec
    All goods imported into Australia must be assigned a customs value, even if provided free of charge like gifts or samples. If there is no contract of sale for the free goods, customs value will be determined by applying valuation methods in sequence like identical goods value, similar goods value, or computed value based on production costs and profits. The customs legislation outlines methods for determining value of imported goods under the Customs Act.

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    Valuation of Free-Of-Charge Goods: What Is A Customs Value and How Is It Calculated?

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    kishoresmec
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    All goods imported into Australia must be assigned a customs value, even if provided free of charge like gifts or samples. If there is no contract of sale for the free goods, customs value will be determined by applying valuation methods in sequence like identical goods value, similar goods value, or computed value based on production costs and profits. The customs legislation outlines methods for determining value of imported goods under the Customs Act.

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    All goods imported into Australia must be assigned a customs value, even if provided free of charge like gifts or samples. If there is no contract of sale for the free goods, customs value will be determined by applying valuation methods in sequence like identical goods value, similar goods value, or computed value based on production costs and profits. The customs legislation outlines methods for determining value of imported goods under the Customs Act.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    48 views2 pages

    Valuation of Free-Of-Charge Goods: What Is A Customs Value and How Is It Calculated?

    Uploaded by

    kishoresmec
    All goods imported into Australia must be assigned a customs value, even if provided free of charge like gifts or samples. If there is no contract of sale for the free goods, customs value will be determined by applying valuation methods in sequence like identical goods value, similar goods value, or computed value based on production costs and profits. The customs legislation outlines methods for determining value of imported goods under the Customs Act.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    VALUATION OF FREE-OF-CHARGE GOODS

    All goods imported into Australia must be assigned a Customs value, even if they were provided free of
    charge. This includes gifts, bonus goods, samples and promotional goods.

    In this case the customs value will be determined by applying


    WHAT IS A CUSTOMS VALUE AND the following valuation methods in the following sequence:
    HOW IS IT CALCULATED?
    1) Identical goods value – the price of identical goods sold for
    The Customs value is the value to be used when goods are export to Australia
    imported into Australia. 2) Similar goods value – the price of similar goods sold for
    export to Australia
    The most common method for valuing any import is to use
    the ‘transaction value’, which is the price the importer 3) Deductive value – the price of either the imported goods,
    actually paid (or is going to pay) for the goods. identical goods or similar goods, in a sale in Australia,
    to another importer, unrelated to you (adjusted for costs
    incurred between the place of export and the first sale in
    IF YOU HAVE A CONTRACT OF SALE Australia)
    Customs and Border Protection will use the transaction value 4) Computed value – this is based on the price of producing the
    method if you have a contract of sale or agreement that includes goods, general expenses, other costs and profits relating to
    the free-of-charge goods and if other requirements of that the imported goods
    valuation method are met. 5) Fall-back value – where no other methods are suitable,
    Customs and Border Protection will determine the value by
    Your free-of-charge goods must be part of a larger shipment
    taking into account the above valuation methods and any
    covered by the contract of sale. In this case, you need to
    other relevant information.
    apportion the total value of the shipment to each good, including
    the free-of-charge goods. The Customs value of each good is
    calculated based on each apportioned value. RELEVANT LEGISLATION
    To apportion the total value, you can use commercial documents This information is intended only as a guide and has no legal
    or contact the overseas supplier to work out how much each force. Full details relating to the valuation requirements are
    good in the shipment is worth. If you do not have enough contained in the Customs Act 1901. Section 159 of the Customs
    information to apportion the total value, contact Customs and Act outlines the methods for determining the Customs value of
    Border Protection for assistance. imported products.

    IF YOU DON’T HAVE A CONTRACT OF SALE RELATED FACT SHEETS


    The transaction value method cannot be used when there is no You can access the following related fact sheets from www.
    contract of sale for the free-of-charge goods. customs.gov.au:

    • Valuation of imported goods


    • Valuation treatment of production assist costs
    FOR MORE INFORMATION
    If you are unsure how to value particular goods, Customs and
    Border Protection officers are available to assist you.

    For information on any Customs and Border Protection matter,


    contact the Customs Information and Support Centre on
    1300 363 263, email information@customs.gov.au or browse our
    website www.customs.gov.au.

    April 2011

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