Case studies: Valuation Method 1
Case study - condition or consideration for which a value cannot be fixed
An importer buys lenses of a type that requires an adapter to fit the lens to the camera with different mounts. The seller offers a mount adapter at half the normal price for each zoom or mirror lens ordered and confirmed with a pro-forma invoice during the period of a special promotion programme. To take advantage of this offer, the importer has to order zoom and mirror lenses exceeding a specified quantity or make an additional order exceeding a specified amount.
The half price adapters are invoiced at the net amount (no discounts being shown) and the Method 1 customs value is based on the reduced price. The importer states that the same number of lenses and mounts are bought over a period irrespective of the cost of the two items and claims that the price reduction is a quantity discount.
The reduced price cannot be used to determine the customs value under Method 1 because it is conditional on the purchase of other goods. However, the customs value can still be determined under Method 1 because the amount of the conditional price reduction is known. The value will be the price paid plus the conditional discount (Article 29.1(b) of the Code and Article 148 of the CCIP refer).