65. Value for duty purposes on any goods imported into the Republic

[Heading of section 65 substituted by section 93 of Act 35 of 2007 effective on 1 April 2012]

(1)     Subject to the provisions of this Act, the value for customs duty purposes of any imported goods shall, at the time of entry for home consumption, be the transaction value thereof, within the meaning of section 66.

(2)     If such value of any imported goods of a single denomination is –

(a)     in excess of one rand, such value shall for the purpose of assessing the amount of duty payable, be calculated to the nearest rand, an amount of 50 cents being regarded as less than one half of one rand;

(b)     less than one rand, such value shall be calculated as one rand.

(3)     Subject to subsection (8), any reference in this Act to customs value or to value for duty purposes, in relation to imported goods, shall be deemed to be a reference to value for customs duty purposes contemplated in subsection (1).

[Subsection (3) substituted by section 93 of Act 35 of 2007 effective on 1 April 2012]

(4)    

(a)            

(i)      The Commissioner may in writing determine the transaction value of any imported goods, which is required to be ascertained or may be determined as provided in section 66.

[Subparagraph (i) substituted by section 96 of Act 60 of 2008]

(ii) Any determination made under paragraph (a) or subsection (5) shall operate-

(aa)   in respect of the person in whose name it is issued and the goods mentioned therein, entered by that person before or after the date when the determination is issued; and

(bb)   subject to the provisions of sections 44(11)(c) and 76B and subsections (7) and (7A).

[Sub­paragraph (ii) substituted by section 16 of Act 33 of 2019]

[Paragraph (a) substituted by section 48 of Act 45 of 1995, by section 59(a) of Act 53 of 1999 and by section 128(a) of Act 60 of 2001]

(b)     The acceptance by any officer of a bill of entry or the release of any goods as entered shall not be deemed to be any such determination.

(c)    

(i)      Whenever any determination is made under paragraph (a) or any determination is amended or withdrawn and a new determination is made under subsection (5), any amount due in terms thereof shall, notwithstanding that such determination is being dealt with in terms of any procedure contemplated in Chapter XA or any proceedings have been instituted in any court in connection therewith, remain payable as long as such determination or amended or new determination remains in force: Provided that the Commissioner on good cause shown may suspend such payment until the date of any final judgment by the High Court or a judgment by the Supreme Court of Appeal.

[Subparagraph (i) substituted by section 144 of Act 45 of 2003 and section 93 of Act 35 of 2007]

(ii)     Such determination, amendment of a determination or new determination shall cease to be in force from the date –

(aa)    of any amendment of this section or sections 66 and 67 or any instrument contemplated in section 74A with the result that the said determination, amended determination or new determination no longer conforms to the interpretation of the relevant provisions of such section or sections or such instrument;

(bb)   of a final judgment by the High Court or a judgment by the Supreme Court of Appeal; or

(cc)    any amendment of a determination or new determination is made effective under subsection (5) or as a result of the finalisation of any procedure contemplated in Chapter XA.

[Item (cc) substituted by section 144 of Act 45 of 2003 and section 93 of Act 35 of 2007]

(iii)    Whenever a court amends or orders the Commissioner to amend any determination made under this subsection or subsection (5) or any determination is amended or a new determination is made under subsection (5) or as a result of the finalisation of any procedure contemplated in Chapter XA, the Commissioner shall not be liable to pay interest on any amount refundable which remained payable in terms of the provisions of subparagraph (i) for any period during which such determination remained in force.

[Subparagraph (iii) substituted by section 144 of Act 45 of 2003 and section 93 of Act 35 of 2007]

[Paragraph (c) substituted by section 128 of Act 60 of 2001]

(5)    

(a)     the Commissioner shall –

(i)      amend any determination or withdraw it and make a new determination with effect from the date it is no longer in force as provided in subsection (4)(c)(ii)(aa) or (bb);

(ii)     except where a determination is being dealt with in terms of any procedure contemplated in Chapter XA, amend any determination or withdraw it and make a new determination if it was made in error or any condition or obligation on which it was issued is no longer fulfilled or on any other good cause shown including any relevant ground for review contemplated in section 6 of the Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000).

[Subparagraph (ii) substituted by section 144 of Act 45 of 2003 and section 93 of Act 35 of 2007]

(b)     Any such amendment or new determination contemplated in paragraph (a)(ii) may be made with effect from –

(i)      subject to the provisions of section 44(11)(c), the date of first entry of the goods in question in circumstances where a false declaration is made for the purposes of this Act;

(ii)     the date of first entry, if the determination was made –

(aa)   by an officer who was biased or reasonably suspected of bias; or

(bb)   for an ulterior purpose or motive, arbitrarily or capriciously or in bad faith;

(iii)    the date of the determination made under subsection (4) in circumstances where such determination was made in bona fide error of law or of fact;

(iv)    the date of the amendment of the previous determination or the date of the new determination:

Provided that whenever any amendment of a determination or a new determination is effective from a date resulting in the person to whom the determination was issued –

(a)     being entitled to a refund of duty, such refund shall be subject to the provisions of section 76B;

(b)     retrospectively incurring an increased liability for duty, such liability shall, subject to the provisions of section 44(11)(c), be limited to goods entered for home consumption during a period of two years immediately preceding the date of such amendment or new determination.

[Subsection (5) substituted by section 128 of Act 60 of 2001]

(6)    

(a)     An appeal against any such determination shall lie to the division of the High Court of South Africa having jurisdiction to hear appeals in the area wherein the determination was made, or the goods in question were entered for home consumption.

[Paragraph (a) amended by section 59 of Act 53 of 1999]

(b)     Such appeal shall, subject to section 96(1), be prosecuted within a period of one year from the date of the determination.

[Paragraph (b) substituted by section 5 of Act 44 of 1996]

(7)     Save where –

(a)     a determination has been made under subsection (4)(a) or (5); or

(b)     subject to section 44(11)(c), any underpayment arises from the circumstances contemplated in the proviso to section 44(11)(a),

[Paragraph (b) substituted by section 70 of Act 32 of 2004]

there shall be no liability for any underpayment of customs duty or excise duty on any goods imported into the Republic, where such underpayment is due to the acceptance of a bill of entry bearing an incorrect value for duty purposes, after a period of two years from the date of entry of such goods.

[Words following paragraph (b) substituted by section 93 of Act 35 of 2007 effective on 1 April 2012]

[Subsection (7) substituted by section 128 of Act 60 of 2001]

(7A) 

(a)     Notwithstanding the provisions of subsection (7), any determination made under subsection (4)(a) as a result of or during the course of or following upon an inspection of the books, accounts and other documents of any importer shall, subject to the provisions of section 44(11)(c), be deemed to have come into operation in respect of the goods in question entered for the purposes of this Act two years prior to the date on which the inspection commenced.

(b)     The expression “inspection of any books and documents”, or any other reference to an inspection in this Act shall be taken to include any act done by an officer in the exercise of any duty imposed or power conferred by this Act for the purposes of the physical examination of goods and documents upon or after or in the absence of entry, the issue of stop notes or other reports, the making of assessments and any pre- or post-importation audit, investigation, inspection or verification of any such books, accounts and other documents required to be kept under this Act.

[Subsection (7A) inserted by section 8 of Act 52 of 1986 and substituted by section 128 of Act 60 of 2001]

(8)     Notwithstanding the provisions of subsections (1) and (4), the value for the purposes of the duty specified in Section B of Part 2 of Schedule No. 1 shall, in respect of imported goods, be the transaction value thereof plus 15 per cent of such value, plus any non-rebated customs duty payable in terms of Part 1 and any excise duty payable in terms of Section A of Part 2 of Schedule No. 1 on such goods, but excluding the duty specified in the said Section B of Part 2 of Schedule No. 1 on such goods.

[Subsection (8) substituted by section 8 of Act 101 of 1985, amended by section 8 of Act 52 of 1986 and section 9 of Act 68 of 1989 and substituted by section 93 of Act 35 of 2007 effective on 1 April 2012]