Cap 109 s 26A Value of goods and assessment of ad valorem duty (DUTIABLE COMMODITIES ORDINANCE)

Contents of Section

Chapter:	109	Title:	DUTIABLE COMMODITIES ORDINANCE	Gazette Number:
Section:	26A	Heading:	Value of goods and assessment of ad valorem duty	Version Date:	30/06/1997

(1) Subject to subsections (2), (3), (4), (5) and (5A), for the purpose of assessing and calculating duty by reference to the value of any goods, the value shall be the normal price which the goods would fetch, at the relevant time, on their sale in the open market between a buyer and seller independent of each other. (Replaced 20 of 1985 s. 5. Amended 45 of 1994 s. 2)
(2) The normal price of any imported dutiable goods and of any dutiable goods manufactured in Hong Kong shall be determined on the assumptions that-

(a) the goods are treated as having been delivered to the buyer in Hong Kong at the time when they are removed from the premises of the seller for the purpose of such delivery;

(b) the buyer will bear transport, insurance and all other costs, charges and expenses incidental to the delivery of the goods to his premises in Hong Kong;

(d) the price does not include the amount of any duty payable under this Ordinance; and

(e) the price includes the value of the right to use any patent, design or trade mark in respect of the goods (including the value of any royalty or licence fee). (Replaced 45 of 1994 s. 2)

(2A) (Repealed 45 of 1994 s. 2)
(3) A sale in the open market between a buyer and seller independent of each other pre-supposes that-

(a) the price is the sole consideration;

(b) the price made is not influenced by any commercial, financial or other relationship, whether by contract or otherwise, between the seller or any person associated in business with him and the buyer or any person associated in business with him (other than the relationship created by the sale of the goods in question); and

(c) no part of the proceeds of the subsequent re-sale, use or disposal of the goods will accrue either directly or indirectly to the seller or any person associated in business with him.

For the purposes of this subsection, 2 persons shall be deemed to be associated in business with one another if, whether directly or indirectly, either of them has any interest in the business or property of the other, or both have a common interest in any business or property, or some third person has an interest in the business or property of both of them.
(4) For the purpose of subsection (1), the Commissioner or any officer authorized by him in that behalf may, subject to subsections (5) and (5A), accept the value of the goods as stated in the contract of sale, invoice or other document, relating to the goods and produced under section 27, if the date of the contract of sale, invoice or other document precedes the date on which the duty is assessed by not more than 12 months. (Amended 45 of 1994 s. 2)
(5) If-

(a) an importer or manufacturer fails to produce any contract of sale, invoice or other document required to be produced by the Commissioner under section 27; (Amended 20 of 1985 s. 5)

(b) in the opinion of the Commissioner or any officer authorized by him in that behalf the information in any contract of sale, invoice or other document produced under section 27 is insufficient or inaccurate as to the value of the goods; or

(c) in the opinion of the Commissioner or any officer authorized by him in that behalf the value of the goods stated in any contract of sale, invoice or other document produced under section 27 is not the value in accordance with subsection (1),

the Commissioner or such officer may fix a value which shall be deemed to be the value of the goods for the purpose of assessing and calculating duty.
(5A) If in the opinion of the Commissioner or any officer authorized by him in that behalf the transport, insurance and other costs, charges and expenses incidental to the delivery of the goods to the buyer in Hong Kong cannot be separately identified in the values stated in any contract of sale, invoice, book of account or other document produced under section 27(1), the Commissioner or such officer may take into account any value or values stated in a declaration made under section 27(2) in determining the value of the goods for the purpose of assessing and calculating the duty. (Added 45 of 1994 s. 2)
(6) If in any contract of sale, invoice or other document the value of the goods is stated in a currency other than Hong Kong dollars, the Hong Kong dollars equivalent of the other currency is calculated at the opening indicative counter exchange selling rate published by the Hong Kong Association of Banks-

(a) for a person permitted to make monthly returns, on the last date of that return; and

(b) in any other case, on the 15th day of the month immediately preceding the month in which the goods are imported.

The Commissioner shall calculate the Hong Kong dollars equivalent where the rate is not published on the relevant day at the indicative counter exchange selling rate published by the Hong Kong Association of Banks on the immediately preceding working day. (Replaced 46 of 1996 s. 12)
(7) A person who is aggrieved by the exercise of the powers conferred under this section may appeal to the Administrative Appeals Board. (Replaced 46 of 1996 s. 12)
(8) In this section "relevant time" (有關時間) means-

(a) in the case of imported goods the time such goods are removed from the premises of the seller for the purpose of export; (Amended 45 of 1994 s. 2)

(b) in the case of goods manufactured in Hong Kong the time such goods are removed from the premises on which they were manufactured. (Added 20 of 1985 s. 5)

(Added 34 of 1984 s. 4)
[cf. 1952 c. 44 s. 258 U.K.]