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?

Question

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?

Related questions

An importer paid a foreign manufacturer S$30,000 for a machine. Will the discount of 15% for early payment be applied to the Customs value to be declared in the permit?

An importer acquires a machine from an overseas supplier. The list price of the machine is S$200 but the supplier grants a 10% trade discount to the buyer because he operates at the retail level of trade, resulting in a total price paid or payable of S$180. What is the Customs value?

What are the discounts in the commercial invoice that are not acceptable by Customs? Which are the ones to deduct from the invoice value for GST?

The invoice value of my goods imported overseas is S$20,000. The trade-in value of S$3,000 was credited. Can I deduct S$3000 from the total CIF value of the import?