Section 19: Under or over valuation of goods

19. Under or over valuation of goods (1) Where the Director-General finds that goods have been declared at a value different from their true value, he may, on the basis of the information provided by the importer and on such other information as is available to him, determine the value of those goods and the importer shall pay duty, excise duty and taxes, if any, on the values so determined. (1A) — (2) Without prejudice to any legal proceedings that may be initiated by the Director-General but subject to section 127A, section 15 shall apply to the determination of the value and payment of duty, excise duty and taxes, if any, under subsection (1), with such modifications, adaptations and exceptions as may be necessary. (2A) Where, in the course of determining the value of any goods, the Director-General finds that it is necessary to delay the final determination, he may, subject to subsection (2B), authorise in writing delivery of the goods provided that— (a) the duty, excise duty and taxes on those goods as declared on the entry are paid; (b) a deposit is made or a bank guarantee is furnished for an amount representing the difference between the amount of duty, excise duty and taxes computed by the Director-General and the amount paid; and (c) such samples of the goods as may be required are produced to the Director-General. (2B) Where the Director-General authorises the delivery of goods pursuant to subsection (2A), the importer shall, not later than 28 days after the date of authorisation, submit to the Director-General in respect of those goods, such documents as may be required in writing by the Director-General, including sales contracts, bank transfers, orders, letters of credit and pro forma invoices. (2C) The Director-General shall, within 14 days of the receipt of the documents required under subsection (2B), make the final determination of the value of the goods and notify the importer in writing of the determination and the additional amount of duty, excise duty and taxes payable, if any, on those goods. C62 – 19 [Issue 6] Customs Act (2D) Where the Director-General issues a notice under subsection (2C) requiring payment of an additional amount of duty, excise duty and taxes, the importer shall, not later than 7 days after the date of the notice, pass an amendment bill of entry and pay the additional amount due. (2E) Where the additional amount due is paid, the Director-General shall, not later than 14 days after the date of payment, refund the deposit or release the bank guarantee made or furnished under subsection (2A) (b). (2F) Where the importer does not submit the documents required under subsection (2B) within the time limit specified in that subsection— (a) the value of the goods on which the amount of duty, excise duty and taxes has been computed under subsection (2A) (b) shall be deemed to have been determined as the final determination of the value of the goods; (b) the deposit or the bank guarantee made or furnished under subsection (2A) (b) shall be forfeited or realised, as the case may be; and (c) the importer shall be notified in writing by the Director-General of the final determination. (3) — (3A) — (3B) — (3C) — (4) Any dispute on valuation of goods pending immediately before the commencement of subsection (3), in so far as it relates to a notice under subsection (2), shall, on the commencement of that subsection, be deemed to have satisfied the requirements for the lodging of a review before the Assessment bsection (2A) (b) shall be forfeited or realised, as the case may be; and (c) the importer shall be notified in writing by the Director-General of the final determination. (3) — (3A) — (3B) — (3C) — (4) Any dispute on valuation of goods pending immediately before the commencement of subsection (3), in so far as it relates to a notice under subsection (2), shall, on the commencement of that subsection, be deemed to have satisfied the requirements for the lodging of a review before the Assessment Review Committee under that subsection. [S. 19 amended by s. 5 (e) of Act 18 of 1999 w.e.f. 1 January 2000; s. 5 (a) of Act 18 of 2003 w.e.f. 21 July 2003; s. 27 (3) (f) of Act 33 of 2004 w.e.f. 1 July 2006; s. 5 (d) of Act 26 of 2012 w.e.f. 1 January 2013; s. 4 (d) of Act 26 of 2013 w.e.f. 21 December 2013.]