Buying commission and customs assessable value: canalising agency service charges were excluded from valuation.

3% service charges collected by a canalising agency on imported goods were held not to form part of the customs assessable value. The Tribunal reasoned that inclusion was justified only if the amount fell within transaction value under the customs valuation rules. Because the charge was buying commission collected by the canalising agency, and not commission or brokerage paid by a foreign supplier, it was excluded from assessable value. No addition could therefore be made to the invoice price on this basis, and the assessee succeeded.

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Issues: Whether the 3% service charges collected by the canalising agency on import of goods were includible in the assessable value for customs duty.

Analysis: The goods were imported through a canalising agency, which separately collected 3% as service charges. The levy could stand only if the amount formed part of the transaction value under the customs valuation framework. The Tribunal held that the amount was not commission or brokerage paid by a foreign supplier, but buying commission collected by the canalising agency. Buying commission is excluded from inclusion in the assessable value under the valuation rules, and no addition could be made to the invoice price on that basis.

Conclusion: The 3% service charges were not includible in the assessable value and the assessee succeeded.

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