Customs Administration

Customs Valuation

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Goods Subject to Valuation on the Basis of Rental or Royalty

In the case of imported goods on which only a rental or royalty is incurred, without a transfer of ownership, the customs value shall be determined on the basis of the rental or royalty amount plus the transportation fee and insurance fee.

In a case in which the rental or royalty declared by the duty-payer is under that of normal value, Customs may determine the amount based on such information as is obtained through investigation, but the determined annual rental or royalty amount is not lower than one tenth of the customs value of the goods.

The imported goods on which duty is collected by rental or royalty pursuant to Paragraph One shall, in addition to the duty collected on rental or royalty, be provided a deposit or a guarantee by a credit institute based on the difference between the duty collected by rental or royalty and the total liable duty on the customs value of the imported goods.

The paragraph one applies only to goods whose ownership is not transferable on account of patent rights, trade secrets, or for any other special reasons approved by the Ministry of Finance.

The rental or usage period of the imported goods as referred to in Paragraph One shall be approved by the Ministry of Finance.

An applicant, filing to import Customs office for assessment of Customs duty on imported goods based on rental or royalty in accordance with Article 38, Paragraph 1, of the Act, shall declare the Customs value of the goods and the rental or royalty payable respectively, and thereto, the lease agreement and the following documents attached to the application:

1. A duplicate of the patent certificate or evidential document issued by the patent authority of the government of exporting country, in case the patent right is not transferable.

2. A manual or relevant documents containing detailed description of functional characteristics of the imported goods, in case the ownership of the goods is not transferable on account of trade secret.

3. A letter of special approval granted by the Ministry of Finance for particular reasons.

For imported goods on which the import duty is to be assessed based on the rental or royalty payable therefore under Article 38, Paragraph 1, of the Act, in case the accumulated rental or royalty for such goods will be higher than the Customs value of the identical or similar goods recently imported, the duty-payer may request, at the time of importation of such goods, that the Customs value be determined based on the Customs value of the identical or similar goods.

A deposit provided by the duty-payer or a guarantee provided by a credit institute pursuant to Article 38, Paragraph 3, of the Act shall be refunded or released from its guaranty when the imported goods have been cleared for export or destroyed under the approval of the Ministry of Finance upon expiration of the time of lease or use of such goods.

In the case of partial damage or destruction of the imported goods as referred to in the preceding paragraph, the indemnity paid therefore by the duty-payer shall be included in the amount of the rental or royalty for the purpose of assessment of import duty; whereas in the case of full damage or destruction of the imported goods, the import duty shall be levied in full amount based on the Customs value of such goods as assessed at the time of importation.

(Re: Customs Act, Article 38 and Enforcement Rules of the Customs Act, Article 21,22,23 )

 

 

  • Publish Date:2013-11-12
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