Value Method 1 - If a branch office is involved, can Method 1 still be used?

Method 1 can still apply, if the branch is an independent legal entity and there is no price influence.
Where goods are imported:
Through a branch office which does not have a separate legal status of its own; or
Directly by the supplier's own employees; or
By a person or firm acting in this supplier's name, for example, under power or attorney from the seller, the transaction cannot be regarded as a sale.
The parties are regarded as being part of the same legal entity. A company cannot sell to itself and therefore the price shown on inter-company transfer or accounting documents cannot be used to establish the Customs value under Method 1. It may be possible to use an earlier sale, for example, if the supplier has purchased rather that manufactured the goods to be valued.
Sale to prior order. Where the goods are imported to the prior order of South African customers, the value can be established under Method 1 on the basis of the price actually paid or payable by the buyer (i.e. the customers in South Africa) to the seller.
If the company is a separate legal entity which have merely adopted the trading name and appearances of the supplier's company, the transaction can still be regarded as a sale between two separate entities.
Where ethod 1 cannot be used proceed to Methods 2 to 6.

 

Last Updated: 04/03/2013 11:11 AM     print this page
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