Customs valuation excludes separately shown interest under deferred payment terms where it is distinct from the price payable.

Interest separately disclosed in an invoice under a deferred payment arrangement is not includible in the customs assessable value where the arrangement covers deferred payment terms and the interest is distinct from the price actually paid or payable. Accepted customs valuation principles and Ministry of Finance instructions treat such financing charges as outside customs value when they are separately shown and clearly identifiable. On those facts, the interest component was excluded from assessable value, and the importer's position was upheld.

---

---

Issues: Whether interest shown separately in the invoice under a deferred payment arrangement was liable to be included in the assessable value of imported goods for customs purposes.

Analysis: The payment terms in the indent and invoice showed that the price covered a 90-day deferred payment arrangement and that the interest component was separately disclosed. The accepted customs valuation principles and the Ministry of Finance instructions provided that interest charges under such financing arrangements are not part of customs value, provided they are separately shown in the invoice and distinguished from the price actually paid or payable. Those conditions were satisfied.

Conclusion: The interest amount was not includible in the assessable value, and the view taken in favour of the importer was correct.

---