Customs and Excise Act 1996

  • repealed
  • Customs and Excise Act 1996: repealed, on 1 October 2018, by section 442 of the Customs and Excise Act 2018 (2018 No 4).

Schedule 4 Valuation of goods for the purposes of excise

s 73(3)

1 Value of goods for excise duty

The value of any goods for the purposes of section 73(3) shall be the price at which the goods are sold exclusive of excise duty and goods and services tax by a person licensed under section 12 if—

(a)

the sale is a sale in the open market as defined in clause 4(1)(c); and

(b)

the sale is made on or prior to the date on which the goods are removed from the manufacturing area.

2 Value of goods manufactured by contractor

The value of any goods for the purposes of section 69 that are deemed to have been manufactured by a contractor shall be their fair market value as determined under clause 4.

3 Value of goods not sold in open market

Where the value of the goods cannot be determined under clause 1 for the reason that the goods were not sold under the conditions specified in paragraphs (a) and (b) of that clause, the value shall be the fair market value of those goods as determined under clause 4.

4 Fair market value

(1)

For the purposes of this clause,—

(a)

the expression identical goods means goods that are the same in all respects, including physical characteristics, quality, and reputation, as the goods being valued, except for minor differences (if any) in appearance that do not affect the value of the goods:

(b)

the expression similar goods means goods that closely resemble the goods being valued in respect of component materials and parts and characteristics and are functionally and commercially interchangeable with the goods being valued, having regard to the quality and reputation of the goods being valued:

(c)

a sale in the open market means—

(i)

that the price is the sole consideration; and

(ii)

that the price is not influenced by any commercial, financial, or other ties, whether by contract or otherwise, between the seller, or any person associated in business with the seller, and the buyer, or any person associated in business with the buyer (other than the relationship created by the sale of the goods in question); and

(iii)

that no part of the proceeds of any subsequent resale, use, or disposal of the goods will accrue, either directly or indirectly, to the seller, or to any person associated in business with the seller:

(d)

2 persons shall be deemed to be associated in business with each other if, whether directly or indirectly, either of them has any interest in the business or property of the other, or both have a common interest in any business or property, or some third person has an interest in the business or property of both of them:

(e)

in determining a fair market value in accordance with this section, the chief executive shall—

(i)

use only those prices which represent a sale between buyers and sellers independent of each other; and

(ii)

exclude from the price any excise duty and goods and services tax.

(2)

For the purposes of this schedule, the fair market value of any goods shall be determined by proceeding sequentially through subclauses (3) to (8) to the first such subclause under which fair market value can be determined.

(3)

The fair market value of any goods at the date of removal shall be the lowest price for which identical goods in the same or substantially the same quantities are generally sold at that date in the open market in New Zealand on sales freely offered and made on ordinary trade terms by the licensee of an area licensed under section 12, other than a contractor.

(4)

Where, in the opinion of the chief executive, the fair market value cannot be determined under subclause (3), it shall be deemed to be the lowest price for which identical goods in quantities different from those being sold are generally sold at that date in the open market in New Zealand on sales freely offered and made on ordinary trade terms by the licensee of an area licensed under section 12, other than a contractor.

(5)

Where, in the opinion of the chief executive, the fair market value cannot be determined under subclause (4), it shall be deemed to be the lowest price for which similar goods in the same or substantially the same quantities are generally sold at that date in the open market in New Zealand on sales freely offered and made on ordinary trade terms by the licensee of an area licensed under section 12, other than a contractor.

(6)

Where, in the opinion of the chief executive, the fair market value cannot be determined under subclause (5), it shall be deemed to be the lowest price for which similar goods in quantities different from those being sold are generally sold at that date in the open market in New Zealand on sales freely offered and made on ordinary trade terms by the licensee of an area licensed under section 12, other than a contractor.

(7)

Where, in the opinion of the chief executive, the fair market value cannot be determined under subclause (6), the chief executive shall ascertain the price which the goods would generally fetch at the retail level and deduct from that price such amount as would reasonably represent the profit margin and other costs beyond the manufacturing level on those goods.

(8)

Where, in the opinion of the chief executive, the fair market value cannot be determined under subclause (7), the chief executive shall compute the value of the goods by taking the costs of the production of the goods and adding such amount as reasonably represents the profit margin and other costs to the manufacturing level of those goods.