There are certain provisos that are taken into consideration when determining Customs Value and when adjusting that Customs Value.
Customs must be satisfied with the truth and accuracy of declared values, compliance with valuation conditions and availability of objective and quantifiable data/evidence of the sale transaction. The following conditions must be satisfied:
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The Customs Value in PNG is at CIF (terms of delivery/incoterms) level. This means that the Customs Value is the value of the goods plus the cost of overseas freight plus cost of insurance for transport of the goods to PNG.
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There should be evidence of a sale for export to PNG. Evidence include such things as commercial invoice, sales contract, purchase order, bank payment documents.
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The sale is not subject to any conditions or restrictions that has effected the value/price of the goods.
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If there exists a relationship between the buyer and the seller, that relationship has not influenced the value/price of the goods, and the importer is able to demonstrate that.
Other Valuation Factors that are taken into account when adjusting a Customs Value are:
Dutiable Factors
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Commissions and brokerage, except buying commission
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Royalties and license fees
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Proceeds of subsequent sale that accrues to the seller
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Advance payments, deposits not reflected on invoice
Non-dutiable Factors
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Discounts
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Buying Commission
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These charges provided they are separately shown on the invoice:
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interest charges
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post-importation charges
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duties and taxes payable in importing country
The dutiable factors are inclusions, and the non-dutiable factors are exclusions in the determination of a Customs Value.
These factors must be clearly shown and adequately described on the invoice, established prior to importation and are directly related to the goods being valued before they can be allowed in the determination of Customs Value.