The Minister for Trade and Customs:

The State Collector has asked the Comptroller-General whether, when job lots of soft goods out of season have been purchased at say 50 per cent discount off original prices, such discount is to be allowed in valuation for duty.

The Victorian practice is stated in the following minute of 24 November 1902 by Mr Symons (Landing Surveyor) as follows:

Re job lines and goods out of season. It is a well-known trade practice for soft goods warehousemen and manufacturers of such lines to clear certain of their goods at the end of the season at special 'Job' or cheap prices.

Our custom is to deal with such shipments individually and upon their merits. We require the importers to show proof by home documents etc. that these are genuine reduced rates. We then take the advice of the expert and assess the value (or rather the discount) if we are satisfied that the transaction is genuine.

The Minister for Trade and Customs forwards the papers with the following minute (dated 11 February 1903):

Forwarded to the Hon. the Attorney-General. I contemplate sanctioning the Victorian practice, as noted in minute of 24 November 1902. But I fear its abuse and desire to be advised:

1. Can it be claimed by the importer?
2. Can Mr Deakin suggest any desirable precautions for the security of the revenue?

1. The question in every case is-what is the fair market value of the goods, in the principal markets of the country of export, in the usual and ordinary commercial acceptation of the term? The market value of certain lines of soft goods is certainly reduced at the end of the season, and the importer is entitled to claim their reduction accordingly. What the reduction of value actually is, is a matter of fact to be determined by evidence, and the discount actually allowed is some evidence of the reduction in value.
2. Where the Collector is not satisfied with the declared value, there is the power of assessment under section 158 of the Customs Act; and there is also the power of purchase by the Customs under section 161. I can suggest no other addition to the usual precautions adopted in all cases.

[Vol. 3, p. 141 ]