Customs valuation: foreign procurement commission for purchasing services was not includible in assessable value of imported machinery.

The foreign procurement agent acted only as a purchasing agent for the importer, with the importer retaining final approval over quotations and the goods bought directly in the importer's name. The 3% commission was remuneration for procurement services, not part of the price of the imported machinery, and it did not enhance the goods' value for customs assessment. The Revenue's attempt was limited to adding the commission to the declared invoice value, rather than invoking best judgment valuation after rejection of the invoice. On those terms, the commission was not includible in the assessable value.

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Issues: Whether the 3% commission payable to the foreign procurement agent for arranging purchase of imported machinery was includible in the assessable value of the goods for customs purposes.

Analysis: The agreement showed that the foreign entity acted only as a purchasing agent for the importer in respect of equipment chosen by the importer. The importer retained final approval over quotations, the goods were purchased directly in the importer's name, and the 3% payment was remuneration for procurement services. On these terms, the commission did not form part of the price of the goods themselves and did not enhance their value. The case was not one for substituting a best judgment valuation where the invoice value had been rejected; the Revenue's attempt was only to add the commission to the declared invoice value.

Conclusion: The commission was not includible in the assessable value, and the addition of 3% to the invoice value was unjustified.

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