Customs Valuation
On 25 April the World
Customs Organisation (WCO)
announced that an important
new instrument had been
finalised at the 42nd session
of the technical committee
on customs valuation which
took place in Brussels
from April 18-22 under the
chairmanship of the United
States of America. According
to the WCO, the instrument
contains a case study
illustrating a scenario where
Customs took into account
transfer pricing information
in the course of verifying the
customs value.
As you may well know the
World Trade Organisation
(WTO) valuation agreement
sets out the methodology
for establishing the customs
value, used as the basis for
calculating customs duties. It
makes provision for Customs
to examine transactions
between related parties where
they have concerns that the
price has been influenced by
the relationship. Then, the
Organisation for Economic
Cooperation and Development
(OECD) developed guidelines
for establishing the transfer
price, that is the price for
goods and services sold
between controlled or related
legal entities, in order to
determine business profit
taxes where businesses are
related.
Over recent years, the
similar objectives but different
methodologies of transfer
pricing and customs valuation
have been noted and it has
been recognised that business
documentation developed for
transfer pricing purposes may
contain useful information
for Customs. An earlier
instrument of the technical
committee, commentary 23.1,
confirmed this principle.
The new case study
provides an example of
Customs making use of
transfer pricing information
based on the transactional net
margin method. On the basis
of this information, Customs
accepted that the sale price
in question had not been
influenced by the relationship.
The case study (case study
14.1) will be made available
in the WCO valuation
compendium, subject to
approval by the WCO council
in July 2016.
Export Agents Rules
The Registrar: Agricultural
Produce Agents Council
(Apac) in terms of the
Agricultural Produce Agents
Act has announced the
proposed amendment of
the export agents rules. The
proposed rules are available
on the website of the Apac
(www.apacweb.org.za).
Comment is due by 06 May
2016.
Macadamia nuts
exports
On 29 April the standards
and requirements regarding
the control of the export of
in-shell macadamia nuts
entered into force, which
is in accordance with the
Department of Agriculture,
Forestry and Fisheries’
Agricultural Product
Standards Act.
Ghana and Nigeria
Mission
The Department of Trade and
Industry (the dti) has invited
participation in a trade and
investment mission to Ghana
and Nigeria from August
8-12. The closing date for
applications is 08 June.
Duty Calls’ Watch List
Comment is due by May 20 on
the proposed increase in the
‘general’ rate of customs duty
on stainless steel flat products,
classifiable under tariff
subheadings 7219.11, 7219.12,
7219.13, 7219.14, 7219.21,
7219.22, 7219.23 7219.24,
7219.31, 7219.32, 7219.33,
7219.34, 7219.35, 7219.90,
7220.11, 7220.12, 7220.20
and 7220.90, from free of
duty to 10% ad valorem. The
application was lodged by
Columbus Stainless (Pty) Ltd.
DUTY CALLS
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