Singapore legislation
Regulation 3
of Customs (Valuation of Locally-Manufactured Goods for Excise Duty) Regulations 2022
Regulation 3
Transaction value as primary basis of valuation
Subregulation 1
For the purposes of levying excise duty under the Act, the value of any locally‑manufactured goods, other than motor spirit, is the transaction value of those goods.
Subregulation 2
For the purposes of paragraph (1), the transaction value of any goods is the price paid or payable for the goods when sold by the manufacturer in Singapore, adjusted in accordance with regulation 4, if —
there are no restrictions respecting the disposition or use of the goods by the buyer, other than restrictions that —
are imposed by law;
limit the geographical area in which the goods may be resold; or
do not substantially affect the value of the goods;
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;
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 manufacturer, 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
the buyer and the manufacturer of the goods are not related at the time the goods are sold or, where the buyer and the manufacturer are related at that time —
their relationship did not influence the price paid or payable for the goods; or
the manufacturer demonstrates that the transaction value of the goods meets the requirements set out in paragraph (3).
Subregulation 3
In a sale between related persons, for the purpose of showing that the relationship did not influence the transaction value, the manufacturer 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 (7), 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 —
the transaction value of identical goods or similar goods manufactured in Singapore in respect of a sale in Singapore of those goods between a manufacturer and a buyer who are not related at the time of the sale;
the deductive value of identical goods or similar goods determined in accordance with regulation 7;
the computed value of identical goods or similar goods determined in accordance with regulation 8; or
where sub-paragraphs (a), (b) and (c) do not apply, the price of identical goods or similar goods charged to —
an unrelated buyer in Singapore;
an unrelated buyer other than in Singapore; or
other related buyers in Singapore.
Subregulation 4
In any case where the proper officer of customs is of the opinion that the relationship between the buyer and the manufacturer of any goods influenced the price paid or payable for the goods, the proper officer of customs must inform the manufacturer, in writing if so requested, of the grounds on which the opinion is formed, and must give the manufacturer a reasonable opportunity to show that the relationship did not influence the price.
Subregulation 5
Where —
the goods have not been sold in Singapore by the manufacturer at or before the time of manufacture;
the proper officer of customs —
has reason to doubt the truth or accuracy of the customs value determined under this regulation;
has requested for further explanation or evidence from the manufacturer that such value represents the price actually paid or payable for the manufactured goods, and if requested by the manufacturer, has informed the manufacturer in writing of the grounds for doubting the truth or accuracy of —
the customs value determined under this regulation; or
any particulars or documents submitted by the manufacturer;
has not received any response from the manufacturer or has not been satisfied by the manufacturer’s response that the customs value can be determined under this regulation; and
has decided that the customs value cannot be determined under this regulation and informed the manufacturer in writing of that decision and the reasons for that decision; or
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 must 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 6
Despite paragraph (5), the order of consideration of the valuation basis provided for in regulations 7 and 8 may, at the discretion of the proper officer of customs, be reversed.
Subregulation 7
The factors and differences mentioned in paragraph (3) are as follows:
the nature of the goods being valued;
the nature of the industry that produces the goods being valued;
the season in which the goods being valued are manufactured;
whether a difference in values is commercially significant;
the commercial levels at which the sales take place;
the quantity levels of the sales;
any of the amounts mentioned in regulation 4(2) and (3);
the costs, charges or expenses incurred by a manufacturer, when the manufacturer sells to a buyer to whom the manufacturer is not related that are not incurred when a manufacturer sells to a buyer to whom the manufacturer is related.