Royalties and licence fees: related to the imported goods
In order to establish the extent, if any, to which the value in respect of which royalties and licence fees are paid, is related to the imported goods, the first question to be resolved in all cases is the true reason for the additional payments.
The assigned right for which a royalty is being paid may reside:
- wholly in the imported goods
- partly in the imported goods and partly in other things (for example in ingredients or component parts added to the goods after their importation) or
- wholly outside the imported goods.