Buyer-funded mould development costs treated as assessable value; pre-deposit of duty and penalties waived, recovery stayed.

Amounts reimbursed by the buyer for mould development were treated as consideration linked to the supply of goods and, on that basis, includible in assessable value. The additional cost was to be spread by amortisation over the mould life, which was accepted as the proper method of inclusion. The distinction between the commercial invoice and the excise invoice was considered immaterial on the facts noted, since duty appeared to have been discharged on the additional consideration. Waiver of pre-deposit of duty and penalties was granted, and recovery was stayed pending appeal.

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Issues: Whether amounts reimbursed by the buyer towards development of moulds used in manufacture of goods were includible in the assessable value; and whether pre-deposit of duty and penalties should be waived pending appeal.

Analysis: The reimbursement for mould development was treated as consideration linked to the supply of the goods and, therefore, part of the assessable value. The allocation of such additional cost by amortisation across the mould life was accepted as the proper method of inclusion. On the facts noted, the duty appeared to have been discharged on the additional consideration, and the distinction between the commercial invoice and the excise invoice was found immaterial at this stage.

Outcome: Waiver of deposit of the duty and penalties was granted and recovery was stayed.

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