Value Method 1 - What evidence is required to prove "buying commission"?

The payment for buying commission mustbe shown separately from the price for the goods on the invoice or other commercial document.
Further evidence in support of any claim to exclude the amount for buying commission from the Customs value may be requested. For example, the importer may be asked to provide the following, but are not limited to:
Signed contract, buying agency agreement, distribution and other similar agreements, clearly setting out the following:
A detailed description of the roles of each of the parties involved in the multiparty transaction;
Which party bears the risk of loss for lost or damaged imported goods?
Who absorbs the cost of shipping and handling?
Which party controls the manner of payment for the goods?
Could the importer purchase from the manufacturers without using the services of the agent?
Documentary evidence to establish which of the alleged sales between the various parties of the imported goods was in actual fact the sale for export to the Republic of South Africa, for example:
Invoices, i.e. commercial invoice, principals invoice and invoices from the various service providers;
A copy of the original seller's invoice showing the price of the goods; and
A copy of the agency invoice clearly showing the additional costs, charges and expenses paid on behalf of the buyer.
A copy of the original seller's contract of sale showing the price of the goods;
Bills of lading; and
Proof of payment, from the financial institution clearly showing the beneficiary and the applicant.
A complete paper trail relating to the imported goods that shows the structure of the entire multiparty transaction.
General correspondence between the parties.
Company reports or brochures all may serve as evidence that a party possesses title in and assumed the risk of loss for the imported goods and functions as an importer or a supplier, thus indicating that an actual sale has occurred with respect to the transaction under consideration.

 

Last Updated: 04/03/2013 11:07 AM     print this page
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