Royalties in customs valuation: add only when they relate to imported goods and are a condition of sale. Royalties and licence fees must be added to invoice value only when they relate to the imported goods and are paid as a condition of sale; if such royalties cannot be objectively quantified, the transaction value may be rejected and valuation proceeded under successive rules. Test values are applicable to related party transactions and, if unavailable or unacceptable, permit adoption of alternative valuation methods rather than arbitrary additions. Buying commissions are not deductible from invoice value and are excluded from computing transaction value; an agent issuing the invoice is treated as the seller.
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Provisions expressly mentioned in the judgment/order text.
Royalties in customs valuation: add only when they relate to imported goods and are a condition of sale.
Royalties and licence fees must be added to invoice value only when they relate to the imported goods and are paid as a condition of sale; if such royalties cannot be objectively quantified, the transaction value may be rejected and valuation proceeded under successive rules. Test values are applicable to related party transactions and, if unavailable or unacceptable, permit adoption of alternative valuation methods rather than arbitrary additions. Buying commissions are not deductible from invoice value and are excluded from computing transaction value; an agent issuing the invoice is treated as the seller.
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