An importer buys a machine from a foreign manufacturer at S$20,000. A cash discount of 5% is granted if payment is made within 10 days after the date of sale. At the point of importation, payment has not been made. What is the Customs value, S$20,000 or S$19,000?

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Accepted Answer

The Customs value of the machine is S$20,000, since the importer had not qualified for the discount at the time of importation.

The discounted price may be declared in the permit only after the importer had made payment and qualified for the cash discount prior to the importation.

Retrospective discounts following the importation will not be allowed.

An importer buys a machine from a foreign manufacturer at S$20,000. A cash discount of 5% is granted if payment is made within 10 days after the date of sale. At the point of importation, payment has not been made. What is the Customs value, S$20,000 or S$19,000?

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