Customs Administration

Customs Valuation

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Imported Goods in General

1.Transaction Value and Additions to the Price Actually Paid or Payable

The customs value of imported goods subject to ad valorem duties shall be determined and calculated on the basis of the transaction value.

The term "transaction value" referred to in the preceding paragraph means the price actually paid or payable for the imported goods sold from the exporting country to the Republic of China.

The following expenses shall be added into the calculation of customs value, provided that such an amount is not already included in the price actually paid or payable for the imported goods:

(1)commissions, brokerage, the cost of containers and the cost of packing incurred by the buyer;

(2)the value, apportioned as appropriate, of the following goods and services supplied by the buyer to the seller free of charge or at reduced cost for use in connection with the production or sale for export of the imported goods:

(i) materials, components, parts and similar items incorporated in the imported goods;

(ii) tools, dies, moulds, and similar items used in the production of the imported goods;

(iii) materials consumed in the production of the imported goods; and

(iv) engineering, development, artwork, design, plans and similar items undertaken elsewhere than in this country and necessary for the production of the imported goods;

(3) the royalties and license fees related to the goods paid by the buyer as a condition of the sale of the goods;

(4) the proceeds for use or disposal of the goods by the buyer accrues to the seller;

(5) the transport cost of the imported goods to the port or place of importation, and loading, unloading and handling charges associated with the transport; and

(6) the cost of insurance.

Expenses added to the customs value in accordance with the preceding paragraph should be added on the basis of objective, quantifiable information. Where objective and quantifiable data do not exist, the customs value cannot be determined under the provision of this Article.

In the case that Customs is doubtful of the truth and accuracy of the transaction documents provided by the duty-payer, or that Customs still remains doubtful after the provision of such an explanation, it shall be deemed that the customs value cannot be determined under the provision of this Article.
(Re: Customs Act, Article 29)

2.Charges and Costs Not Included in the Price Actually Paid or Payable
The term "the price actually paid or payable for imported goods sold from an exporting country to the Republic of China" in Article 29, Paragraph 2, of the Act shall not include the following expenses, Customs duties, and other taxes, provided that they are distinguished from the price actually paid or payable for the imported goods:

1. Expenses for construction, erection, assembly, maintenance or technical assistance undertaken after importation of imported goods such as industrial plants, machinery and equipment.

2. The cost of transport after importation.

3. The deferred interest on a transaction with deferred payment terms.

4. Customs duties and taxes on imported goods.

Except for expenses specified in Article 29, Paragraph 3, of the Act, expenses paid by the buyer for his own benefit shall not be considered as a payment to the seller, even though they might be regarded as being benefit to the seller.


(Re: Enforcement Rules of the Customs Act, Article 11)

3.Commissions, Royalties and License Fees

The term "commissions" referred to in Article 29, Paragraph 3, Subparagraph 1, of the Act shall not include fees paid by the buyer to his agent for purchase of the imported goods abroad.

The term "royalties and license fees" referred to in Article 29,Paragraph 3, Subparagraph 3, of the Act shall denote the payment to acquire the patent, the exclusive rights of trademark, copyright, or other intellectual property rights protected by legislation related to the imported goods, excluding charges for the right to reproduce imported goods in the R.O.C.

(Re: Enforcement Rules of the Customs Act, Article 12)

4.Limitations on the Use of Transaction Value


The transaction value shall not be used as the basis for determining and calculating the customs value of imported goods under any of the following circumstances:

(1)where there are restrictions as to the use or disposition of the goods by the buyer other than restrictions which:

(i)
are imposed or required by law or public authorities in the Republic of China;
(ii)
limit the geographical area in which the goods may be resold;
(iii)
do not substantially affect the value of the goods;

(2)where the sale or the price is subject to some condition or consideration for which a value cannot be determined with respect to the goods being valued;
(3)where part of the proceeds of any subsequent use or disposal of the goods by the buyer will accrue to the seller, but where such an amount cannot be determined;
(4)where the buyer and seller are related and the relationship influences the transaction value.

For the purpose of sub-paragraph four of the preceding paragraph the buyer and seller shall be deemed to be related only if:

(1)one of them is a manager, board director or supervisor of the other's business;
(2)they are legally recognized partners in business;
(3)they are employer and employee;
(4)one of them directly or indirectly owns, controls or holds five percent or more of the outstanding voting stocks or shares of the other's business;
(5)one of them directly or indirectly controls the other;
(6)both of them are directly or indirectly controlled by a third person;
(7)together they directly or indirectly control a third person; or
(8)they are spouses or relatives within a third-degree family relationship.

(Re: Customs Act, Article 30)

5. Test Value
If the buyer and seller are deemed to be related under Article 30 of the Act, Customs, if having doubts about the transaction value, shall investigate the circumstances of the transaction; if necessary, Customs may require the duty-payer to provide more detailed information.

In case Customs, pursuant to information discovered by itself or provided by the duty-payer, consider that the relationship of the seller and the buyer affects the transaction value, it shall explain the reasons to the duty-payer and provide the duty-payer with a reasonable opportunity to respond. The duty-payer may request Customs to explain his/her reasons in written form.

In case the transaction value referred to in the preceding paragraph is close to one of the following values, it shall be deemed that the relationship has no effect on the transaction value:

1. The transaction value of identical or similar goods determined by Customs where the buyer and the seller are unrelated.

2. The deductive value of identical or similar goods determined by Customs.

3. The computed value of identical or similar goods determined by Customs.

The identical or similar goods referred to in Subparagraph 1 and 3 of the preceding paragraph shall be limited to imported goods which are exported from the exporting country on the date of exportation or within 30 days before or after the date of exportation of the goods being valued. The identical or similar goods referred to in Subparagraph 2 shall be limited to goods which are imported on the date of importation or within 30 days before or after the date of importation of the goods being valued.

(Re: Enforcement Rules of the Customs Act, Article 14)

6.Transaction Value of Identical Merchandise

If the customs value of the imported goods cannot be determined under the provisions of Article 29, the customs value shall be based upon the transaction value of identical goods sold for export to the Republic of China, exported at or about the same time as the goods being valued. In applying this Article, a reasonable adjustment shall be made to take into account value differences attributable to commercial levels, quantity, transport costs, etc.

The term "identical goods" referred to in the preceding paragraph means goods which are the same in all respects, including country of production, physical characteristics, quality and reputation, as the goods being valued.

(Re: Customs Act, Article 31)

7. Transaction Value of Similar Merchandise

If the customs value of the imported goods cannot be determined under the provisions of Articles 29 and 31, the customs value shall be based on the transaction value of similar goods sold for export to the Republic of China, exported at or about the same time as the goods being valued. In applying this Article, a reasonable adjustment shall be made to take into account differences in value attributable to commercial levels, quantity, transport costs, etc.

The term "similar goods" referred to in the preceding paragraph means goods which, although not alike in all respects, are produced in the same country, perform the same functions, have like characteristics and like component materials, as the goods being valued, and are commercially interchangeable with the goods being valued.
(Re: Customs Act, Article 32)

8. Order of Precedence in Regard to Two or More Transaction Values of Identical or Similar Merchandise


Where there are two or more transaction values available with respect to identical goods as referred to in Article 31, Paragraph 1, of the Act, the applicable transaction value shall be determined in accordance with the following order of precedence:

1. The transaction value of identical goods produced by the same manufacturer shall be given precedence in application over the transaction value of identical goods produced by other manufacturers.

2. The transaction value of identical goods at the same commercial level and in substantially the same quantity as the goods being valued shall be given precedence in application.

3. Where there are two or more transaction values of identical goods available, the lowest value shall be given precedence in application.


The provisions of the preceding paragraph shall apply mutatis mutandis to the transaction value of the similar goods as referred to in Paragraph 1, Article 32 of the Act.

(Re: Enforcement Rules of the Customs Act, Article 15)

9. Exportation Date


The expression "exported at or about the same time"referred to in Article 31, Paragraph 1, and Article 32, Paragraph 1, of the Act shall mean within 30 days before or after the date of exportation.

The expression "at or about the time of the importation" pursuant to Article 33, Paragraph 3 and Paragraph 4, of the Act shall mean within 30 days before or after the date of importation.

(Re: Enforcement Rules of the Customs Act, Article 16)

10.Deductive Value


If the customs value of the imported goods cannot be determined under the provisions of Articles 29, 31, and 32, the customs value shall be based on a deductive value.

Customs may, according to the request of the duty-payer, reverse the order of application of present, Article 33, and Article 34 for a customs valuation.

The term "deductive value" referred to in Paragraph One means the customs value shall be based on the unit price at which the imported goods or identical or similar imported goods, are sold in the Republic of China in the condition as imported, in the greatest aggregate quantity, at or about the time of the importation of the goods being valued, to persons who are not related to the persons from whom they buy such goods at the first commercial level, subject to deductions for the following:

(1) either the commissions usually paid or agreed to be paid, or the additions usually made for profit and general expenses in connection with the sale of the imported goods or imported goods of the same class or kind in the Republic of China;


(2) the customs duties, and other national taxes payable in the Republic of China by reason of importation and sale of the goods;

(3) the transport and insurance costs and associated costs incurred within the Republic of China after the importation of the goods.

If neither the imported goods nor identical nor similar imported goods are sold at or about the time of importation of the goods being valued, the customs value shall be based on the unit price at which the imported goods or identical or similar goods are sold in the greatest aggregate quantity in the condition as imported, to persons who are not related to the persons from whom they buy such goods, at the time when sales of the imported goods or identical or similar goods are made in sufficient quantity to establish the unit price of the imported goods being valued, within ninety days following the date of the importation of the goods being valued, subject to deductions for the items enumerated in the preceding paragraph.


If the imported goods are not sold in the condition as imported, then, if the duty-payer so requests, the customs value shall be based on the unit price at which the imported goods, after further processing, are sold in the greatest aggregate quantity to persons in the Republic of China who are not related to the persons from whom they buy such goods, due allowance being made for the value added by such processing and the deductions enumerated in Paragraph Three of this Article.


The term "deductive value" referred in to Article 33, Paragraph 3, of the Act shall not include circumstances as specified in Article 29, Paragraph 3, Subparagraph 2, of the Act between the buyer of the greatest aggregate quantity of the first commercial level of the imported goods and the foreign producer or seller of the imported goods.

The profit, general expenses and commissions usually paid or agreed to be paid referred to in Article 33, Paragraph 3, Subparagraph 1, of the Act shall be verified on the basis of the generally accepted accounting principles of the Republic of China.


(Re: Customs Act, Article 33 and the Enforcement Rules of the Customs Act, Article 17)

11.Computed Value


If the customs value of the imported goods cannot be determined under the provisions of Articles 29, 31, 32 and 33, the customs value shall be based on a computed value.

The term "computed value" referred to in the preceding paragraph means the sum of the following:
(1)the costs and expenses of producing the imported goods;
(2)an amount for profit and general expenses equal to that usually reflected in the sale of the imported goods or imported goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to the Republic of China;
(3)the transport cost of the imported goods to the port or place of importation, loading, unloading and handling charges and insurance costs associated with the transport.

The term "costs and expenses" referred to in Article 34, Paragraph 2, Subparagraph 1, of the Act shall be verified based on the records provided by the manufacturer of the imported goods in connection with the production of the imported goods, provided that such records are in accordance with the generally accepted accounting principles in the country of production.

Customs may request the importers to provide the manufacturer’s accounting books, vouchers and other records related to the production of imported goods when determining the Customs value pursuant to Article 34 of the Act.

In cases where the manufacturer do not have residence or domicile within R.O.C, Customs shall acquire the consent of the manufacturer before proceeding pursuant to the preceding paragraph. Customs may, upon consent of the manufacturer and without the opposition of the investigated country, undertake investigation.


(Re: Customs Act, Article 34 and the Enforcement Rules of the Customs Act, Article 18)

12.Fallback Value


If the customs value of the imported goods cannot be determined under the provisions of Articles 29, 31, 32, 33 and 34, the customs value shall be determined using reasonable means on the basis of data available to Customs.

The term "reasonable means" referred to in Article 35, of the Act shall denote the valuation methods consistent with the valuation principles specified in Article 29 through 34 of the Act.

While Customs determines the Customs value pursuant to the reasonable means prescribed in Article 35 of the Act, the following valuation methods or values shall not be adopted:

1. The domestic sale price of the goods manufactured in the R.O.C.

2. A system which provides for the acceptance for Customs purposes of the higher of two alternative values.

3. The price of the goods on the domestic market of exporting countries.

4. The cost of production other than computed values which have been determined for identical or similar goods in accordance with the provisions of Article 34 of the Act.

5. The price of the goods for export to a country other than R.O.C.

6. The minimum Customs values determined by Customs.

7. Arbitrary or fictitious values.

(Re: Customs Act, Article 35 and the Enforcement Rules of the Customs Act, Article 19)

  • Publish Date:2013-11-12
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