INFORMATION ON IMPLEMENTATION AND ADMINISTRATION

OF THE AGREEMENT ON CUSTOMS VALUATION

CHECKLIST OF ISSUES

Tonga

The following communication, dated 1 April 2021, is being circulated at the request of the delegation of Tonga.

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1.     Questions concerning Article 1:

(a)   Sales between related persons:

(i)  Are sales between related persons subject to special provisions?

Yes, see Part 3-Section 9 (2) and Section 11 (d) of the Customs Act 2007. Please refer below:

https://ago.gov.to/cms/images/LEGISLATION/PRINCIPAL/2007/2007-0005/CustomsAct_2.pdf

PART 3 - CUSTOMS VALUATION OF IMPORTED GOODS

9 Interpretation

(2)        For the purposes of this Part, two persons are related persons if:

(a)       both being natural persons:

(i)     they are connected by family; or

(ii)     one of them is an officer or director of a company controlled, directly or indirectly, by the other;

(b)       both being companies:

(i)     that are controlled, directly or indirectly, by a third person (whether or not a company);

(ii)     that together control, directly or indirectly, a third company; or  

(iii)    where the same person (whether or not a company) is in a position to cast, or control the casting of 5% or more of the maximum number of votes that might be cast at a general meeting of each company;

(c)     one person being a company is, directly or indirectly, controlled by the other person (whether or not a company);

(d)    one person being a natural person, is an employee, officer, or director of the other person; or

(e)       they are members of the same partnership.

11 Transaction value of imported goods not to apply

The transaction value of imported goods will not determine the customs value if:

(d)    the vendor and purchaser are related persons at the time the goods were sold for export unless: 

(i)     the Chief Commissioner is satisfied that the relationship did not influence the price paid or payable for the goods; or

(ii)     the importer satisfies the Chief Commissioner that the transaction value of the goods closely approximates the transaction value, deductive value, or computed value of identical or similar goods sold at comparable trade and quantity levels to unrelated buyers in the Kingdom at or about the same time as the goods to be valued.

(ii)    Is the fact of intercompany prices prima facie considered as grounds for regarding the respective prices as being influenced?

No, please refer to Section 11(d)(i) of the Customs Act 2007. Please refer below:

11 Transaction value of imported goods not to apply

The transaction value of imported goods will not determine the customs value if:

(d)    the vendor and purchaser are related persons at the time the goods were sold for export unless:                 

(i)     the Chief Commissioner is satisfied that the relationship did not influence the price paid or payable for the goods; or

(iii)   What is the provision for giving the communication of the afore-mentioned grounds in writing if the importer so requests? (Article 1.2(a))

Section 18 and 20 of the Customs Act 2007. Please refer below:

18 Importer advised of method of determination

The Chief Commissioner shall, upon written request, advise the importer, by notice in writing, of the method used to determine the customs value of imported goods.