Singapore legislation

Regulation 3

Transaction value as primary basis of valuation

Amended byS 146/2003 wef 01/04/2003S 186/2005 wef 01/04/2005

Subregulation 1

For the levying of customs duty or excise duty, the value of imported goods shall be their transaction value, that is, the price paid or payable for the goods when sold for export to Singapore, adjusted in accordance with regulation 4, if —

(a)

there are no restrictions respecting the disposition or use of the goods by the buyer, other than restrictions that —

(i)

are imposed by law;

(ii)

limit the geographical area in which the goods may be resold; or

(iii)

do not substantially affect the value of the goods;

(b)

the sale of the goods or the price paid or payable for the goods is not subject to some condition or consideration in respect of which a value cannot be determined;

(c)

any part of the proceeds of any subsequent resale, disposal, or use of the goods by the buyer is to accrue, directly or indirectly, to the seller, the price paid or payable for the goods includes the value of that part of the proceeds or can be adjusted in accordance with regulation 4; and

(d)

the buyer and the seller of the goods are not related at the time the goods are sold for export or, where the buyer and the seller are related at that time —

(i)

their relationship did not influence the price paid or payable for the goods; or

(ii)

the importer demonstrates that the transaction value of the goods meets the requirements set out in paragraph (2).

Subregulation 2

Amended byS 146/2003 wef 01/04/2003

In a sale between related persons, for the purpose of showing that the relationship did not influence the transaction value, the importer may produce evidence that the transaction value of the goods being valued, taking into consideration any relevant factors including such factors and differences as enumerated in paragraph (6), closely approximates the customs value of other goods determined at the same time or substantially at the same time as the goods being valued, being —

(a)

the transaction value of identical goods or similar goods in respect of a sale of those goods for export to Singapore between a seller and a buyer who are not related at the time of the sale;

(b)

the deductive value of identical goods or similar goods determined in accordance with regulation 7;

(c)

the computed value of identical goods or similar goods determined in accordance with regulation 8; or

(d)

where sub-paragraphs (a), (b) and (c) do not apply, the price of identical goods or similar goods charged to —

(i)

an unrelated buyer in the country of export;

(ii)

an unrelated buyer in a country other than Singapore or the country of export; or

(iii)

other related buyers in Singapore.

Subregulation 3

In any case where the proper officer of customs is of the opinion that the relationship between the buyer and the seller of any goods influenced the price paid or payable for the goods, he shall inform the importer, in writing if so requested, of the grounds on which he formed his opinion, and shall give the importer a reasonable opportunity to satisfy him that the relationship did not influence the price.

Subregulation 4

Amended byS 186/2005 wef 01/04/2005

Where —

(a)

the proper officer of customs —

(i)

has reason to doubt the truth or accuracy of the customs value determined under this regulation;

(ii)

has requested for further explanation or evidence from the importer that such value represents the price actually paid or payable for the imported goods, and if requested by the importer, has informed the importer in writing of the grounds for doubting the truth or accuracy of —

(A)

the customs value determined under this regulation; or

(B)

any particulars or documents submitted by the importer;

(iii)

has not received any response from the importer or has not been satisfied by the importer’s response that the customs value can be determined under this regulation; and

(iv)

has decided that the customs value cannot be determined under this regulation and informed the importer in writing of his decision and the reasons for that decision; or

(b)

for any other reason, the proper officer of customs is of the opinion that the customs value cannot be determined under this regulation,the customs value shall be determined by proceeding sequentially through regulations 5 to 9 to the first such regulation under which the customs value can, in the opinion of the proper officer of customs, be determined.

Subregulation 5

Notwithstanding paragraph (4), on the written request of the importer to the proper officer of customs the order of consideration of the valuation basis provided for in regulations 7 and 8 shall be reversed.

Subregulation 6

The factors and differences referred to in paragraph (2) are as follows:

(a)

the nature of the goods being valued;

(b)

the nature of the industry that produces the goods being valued;

(c)

the season in which the goods being valued are imported;

(d)

whether a difference in values is commercially significant;

(e)

the commercial levels at which the sales take place;

(f)

the quantity levels of the sales;

(g)

any of the amounts referred to in regulation 4(2) and (3); and

(h)

the costs, charges or expenses incurred by a seller, when he sells to a buyer to whom he is not related that are not incurred when a seller sells to a buyer to whom he is related.

Read in full context — Customs (Valuation) Regulations →