In order to determine the customs value for Customs duty purposes, it is necessary to have full knowledge of the facts relating to the commercial transaction involving the imported goods. The importer is required to furnish a written declaration of facts, on the forms prescribed by the Commissioner within the provision of Sections 222 and 258 of the Customs Act, in addition to the import entry and the commercial documents.
The prescribed are Forms C84 if Method 1 is being used and Form C85 if any other Methods are being used.
In the Declaration of Particulars, the importer must state whether:
- any payment in addition to the invoice price has been or will be made, and that all relevant invoices and information included in contractual arrangements have been submitted,
- the importer is related to the foreign supplier and whether the price has been influenced by this relationship,
- any part of the proceeds of later resale will accrue directly or indirectly to the seller, etc. (Reference: Paragraph 8(1)(d) of the Schedule).
If the imported goods are not the subjects of a sale, this also has to be stated in the declaration at line seven (7) of the C85 (e.g. goods sent on consignment to an agent or transferred to a branch or samples sent free of charge).
- For valuation purposes, the importer is required to calculate and declare a value for duty on the Customs entry documents that meet all of the requirements of the valuation provisions of the Customs Act, Regulations and Administrative Policies.
- It is the practice and a requirement under the regulations that an importer hires a customs broker to transact his Customs business where the value of the imports exceeds US$5000 whether or not the consignment is personal effects or for commercial use. (See Regulations 147(c)). Note that it is the importer, and not the broker or authorized agent, who is ultimately responsible and liable for the correct declaration of the Customs value.
- All documentary evidence to support the declared value may not need to accompany each entry, but should be available for Customs review when required. It is the responsibility of any person concerned with the importation of goods to maintain, in a manner that facilitates Customs review, all information and records used in the determination and declaration of the value for duty. See Regulations 26 and 147(b) and Section 223 of the Customs Act.
Cases where a declaration of Particulars may be unnecessary:
- It is general practice to dispense with the written declaration of Particulars in certain cases, such as:
- non-commercial importation by passengers;
- importation of a value not exceeding US$1000;
- free of charge goods of a value less than US $1,000 imported as a part of a larger consignment;
- where the nature of the Customs procedures and/or legislation to which the goods are subject do not require submission of a Declaration of Particulars.
Who can sign the Declaration of Particulars Form?
The Declaration of Particulars form can be signed by any of the following person:
- The actual importer if an individual
- A partner in the case of a partnership
- A director or the secretary in the case of an incorporated company
- Any employee duly authorised in writing by one of the persons mentioned above.
Note: An in-house broker can sign the declaration form (C84 or 85) only if he is authorised to do so on a C73. However, the authorization form (C73) must be filed with the Department.
Importers using the transaction value method (method 1) should use the C84 form and are required to complete this form and sign at box 27. All questions regarding the transaction between the seller and the buyer should be answered. The transaction value should be calculated taking into account the adjustments under Paragraphs 8 and 9 of the Schedule or where appropriate. The reverse of the form will capture this calculation and will ensure that the importer considers all the elements or components necessary and is required to be added to or deducted from the price paid to arrive at the value for duty. If there is more than one invoice, then the importer should combine all invoice values to complete lines 11 – 25 using the first invoice column.
If value for duty cannot be determined under the transaction value method then the goods must be valued under a subsequent method and the C85 form must be used. Importers using one of these other methods must visit the Valuation Verification Unit for guidance in arriving at the value for duty before preparing the import entry (C78) form. They are required to take all the relevant information and documents relating to the imported goods to determine the value. Both sides of the form must be completed and the declaration signed at Box 27.