Customs valuation excludes exceptional transshipment freight and insurance charges when the declared price already reflects normal C.I.F. value

Extra freight and insurance charges arising from the grounding of the original vessel and transshipment to another vessel were not includible in customs assessable value where the declared price already reflected the normal C.I.F. value. The added expenses were exceptional and arose from an unforeseen shipping incident, rather than forming part of the ordinary freight component used in customs valuation. Customs valuation proceeds on actual freight or a recognised fixed percentage basis, so such extraordinary post-shipment charges are excluded from assessable value.

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Issues: Whether extra freight and insurance charges incurred because the original vessel was grounded and the goods were transferred to another vessel could be added to the assessable value for customs purposes.

Analysis: The declared value already reflected the normal C.I.F. value. The additional freight and insurance were exceptional expenses arising from the grounding of the ship and transshipment to another vessel. Such extra charges were not ordinarily taken into account in customs valuation, which proceeds on the actual freight or a fixed percentage basis.

Conclusion: The additional freight and insurance charges were not includible in the assessable value. The appeal was dismissed.

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