An individual wants to import a car from UK and likes to find out how will Customs assess the value of the car. The price of the car is $50,000 inclusive of freight and insurance charges. However, there is an additional $7,000 payable to the UK exporter as commission and is conditional for the sale of the car for export to Singapore. What is the Customs value of the car?
The transaction value method is first considered in establishing the customs value, which is the Cost, Insurance and Freight (CIF) value under incoterms.
To establish the customs value under this method, all other charges incidental to the sale and delivery of the motor vehicle must be added to the transaction value or the price paid or payable for the motor vehicle.
Examples of these charges include selling commissions, assists (materials supplied by the importer), packing costs, proceeds of resale accruing to the seller, royalties and licence fees, freight and insurance charges.
Hence, the Customs value of the car is S$57,000.
Related questions
What customs value should I declare for my import permit application? The invoice shows Free on Board (FOB) incoterm.
How do I calculate the total import duty and GST value for dutiable goods? What are the duty taxes imposed for the import of Motor Vehicles into Singapore?
How do I establish customs value for import?
How should I declare the customs value for importation of goods if insurance was not purchased?
Need more help?
Get in touch