The King v. Gas & Oil Products Ltd.

The King v. Gas & Oil Products Ltd.

Packing charges for filling drums with Ethyl fluid are 'labour and charges for packing' under Item 710(f); such charges must be added to the invoice value to determine the fair market value under Customs Act ss.35 and 45, and are therefore dutiable at the ad valorem rate prescribed in Item 710(b); packaging charges would not obtain a lower rate even if separately stated.

Citation
[1948] SCR 215
Parties
Appellant/plaintiff: His Majesty The King on the Information of the Attorney‑General of Canada; Respondent/defendant: Gas and Oil Products, Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
13 April 1948
Procedural Posture
Appeal to Supreme Court of Canada From Exchequer Court of Canada / Final Appellate Decision (judgment on Appeal)
Outcome
Appeal allowed; Exchequer Court judgment reversed; judgment entered for appellant for customs duty claimed with costs.
Legal Topics
Customs Duty on Packing Charges, Valuation for Ad Valorem Duty, Interpretation of Tariff Provisions, Fair Market Value Determination
Source Language
English
Taxation Customs Law Customs Duty on Packing Charges Valuation for Ad Valorem Duty Interpretation of Tariff Provisions Fair Market Value Determination

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Parties

His Majesty The King on the Information of the Attorney‑General of Canada

Appellant/plaintiff

Gas and Oil Products, Limited

Respondent/defendant

Procedural Posture

Appeal to Supreme Court of Canada From Exchequer Court of Canada / Final Appellate Decision (judgment on Appeal)

Legal Issues

  1. 1 Whether packaging charges for filling drums with liquid are 'labour and charges for packing' dutiable under Item 710(f) of Schedule A to the Customs Tariff
  2. 2 Whether the term 'packing' includes placing a liquid in receptacles such as drums
  3. 3 How to determine the fair market value of the fluid as packaged for ad valorem duty under Customs Act s.35 and s.45

Ratio Decidendi

Packing charges for filling drums with Ethyl fluid are 'labour and charges for packing' under Item 710(f); such charges must be added to the invoice value to determine the fair market value under Customs Act ss.35 and 45, and are therefore dutiable at the ad valorem rate prescribed in Item 710(b); packaging charges would not obtain a lower rate even if separately stated.

Court Disposition

Appeal allowed; Exchequer Court judgment reversed; judgment entered for appellant for customs duty claimed with costs.

Orders

  • Appeal allowed.
  • Judgment directed to be entered for the appellant for $898.28 with costs throughout.