Customs valuation includes contractual high seas sale charges where demurrage, wharfage and stock loss form part of the agreed price.

Contractually stipulated demurrage, wharfage and stock loss charges under a high seas sale agreement form part of the price actually paid or payable for customs valuation purposes when they are expressly agreed as conditions of sale and pre-determined in the contract. Such amounts are not treated as excluded post-importation expenses where they arise from the sale structure itself and are added under the transaction value rules. Earlier authority excluding demurrage was distinguished because it concerned extraordinary port-delay charges, not contractual charges embedded in the high seas sale price. These charges were therefore includible in the assessable value of the imported goods.

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Issues: Whether demurrage, wharfage and stock loss charges paid under ex-high seas sale agreements are includible in the assessable value of the imported goods for customs valuation.

Analysis: The majority held that in a high seas sale, the relevant contract for valuation is the sale agreement between the high seas seller and the buyer, and payments stipulated in that agreement form part of the price actually paid or payable. The charges in question were specifically provided for in the contract, were pre-determined, and were paid as conditions of sale. On that reasoning, they fell within the scope of the valuation rules governing additions to transaction value and were not to be treated as excluded post-importation expenses. The earlier view excluding demurrage was distinguished on the ground that it concerned extraordinary port-delay charges not arising from a contractual high seas sale price structure.

Conclusion: Demurrage, wharfage and stock loss charges were includible in the assessable value and the Revenue's appeals succeeded.

Final Conclusion: The majority determined that contractually stipulated charges payable under the high seas sale formed part of the customs assessable value of the imported goods.

Ratio Decidendi: Where demurrage, wharfage and stock loss are expressly agreed as part of the consideration payable under a high seas sale contract, they constitute part of the price actually paid or payable and are includible in the assessable value under the customs valuation rules.

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