Commissioner For The South African Revenue Service v Delta Motor Corporation (Pty) Ltd. (279/2001)
Commissioner For The South African Revenue Service v Delta Motor Corporation (Pty) Ltd. (279/2001) [2002] ZASCA 114; 65 SATC 165 (23 September 2002)
The Supreme Court of Appeal held that the EST charges paid by the respondent to Opel were not part of the price of the imported CKD kits for customs duty purposes. The evidence established that the EST charges, comprising engineering, styling, and tooling portions, were royalties paid for the right to assemble, sell, and service Opel vehicles, and not directly related to the imported kits. The contractual arrangements made the EST charges payable in respect of vehicles sold, not as a condition of sale of the imported kits. The 1998 amendment clarified, rather than altered, the existing positi…
Source excerpt
- Customs Duty
- Royalty Payments
- Transaction Value
- Licence Fee
- Contractual Interpretation