1967-HKRS28-8-34_Part01 — Page 43

032 of 1932.)

(Cap. 473

(Cxp. 1093)

Costs of manufacture.

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"tax" means Commonwealth Preference Tax payable under section 6 and also means any tax which was paid or was payable in accordance with the provisions of the Commonwealth Prefer. ence Ordinance 1932 or the Commonwealth Preference (Motor Vehicles) Ordinance.

(2) A motor vehicle shall be treated as a Commonwealth product for the purposes of this Ordinance if-

(0) it was substantially manufactured in the Commonwealth;

and

(b) at least one-half of the costs of its manufacture, within the meaning of section 3, is attributable to Common- wealth expenditure as defined in section 4,

but otherwise shall be treated as not being a Commonwealth product.

(3) In this Ordinance, “Commonwealth" means the countries specified in the First Schedule to the Dutiable Commodities Ordinance.

3. (1) Subject to the provisions of subsection (2), the costs of manufacture of a motor vehicle shall be the costs incurred by the manufacturer in relation to the vehicle before it is dispatched in its finished state and shall include the following items-~-~~

(a) the costs to the manufacturer, as received into the factory, of any materials (including components and unfinished goods) used in the manufacture of the vehicle, less the amount of any customs duty or any other duty or tax incurred in respect of such materials which is sub- sequently refunded on the exportation of the vehicle; (b) the cost of labour directly employed in the manufacture

of the vehicle;

(c) the factory overhead costs incurred in relation to the

manufacture of the vehicle in respect of-

(i) rent, rates and taxes, motive power, electricity, gas, fuel, water, lighting and heating.

(ii) factory supervision, including the costs of employ- ing managers, foremen, timekeepers, watchmen and other similar officers and servants of the manufacturer:

(iii) maintenance, repairs and renewals of plant, machinery, tools and factory buildings;

(iv) depreciation of plant, machinery and tools; (v) interest on capital outlay on the factory buildings and land;

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(vi) interest on depreciated value of plant, machinery and tools:

(d) the cost of any process carried out in the course of the manufacture of the vehicle by an independent contractor in performance of a contract with the manufacturer.

(2) In computing the costs of manufacture as aforesaid the following items shall not be included...

(a) the cost of exterior packing,

(b) the manufacturer's profit or the profit or remuneration of any trader, broker, exporter or other person dealing with the vehicle in its finished manufactured state;

(c) the cost of carriage and freight or insurance or any other charges incurred in respect of the vehicle after its manufacture.

4. (1) Without prejudice to the provisions of subsection (2), Commonwealth expenditure shall include any costs mentioned in item (a), (b) or (c) of subsection (1) of section 3 which are incurred in respect of materials produced within the Commonwealth, or in respect of work done or factorica situated within the Common- wealth.

(2) Where any costs mentioned in item (a) of subsection (1) of section 3 are incurred in respect of materials which have beca manufactured or processed within the Commonwealth, Common. weakb expenditure means a proportion of those costs equal to the proportion of Commonwealth expenditure which is shown to the satisfaction of the Commissioner to be included in the costs incurred by the manufacturer or processor of those materials within the Commonwealth.

(3) In relation to any cost mentioned in item (d) of sub- section (1) of section 3. Commonwealth expenditure means a proportion of that cost equal to the proportion of Commonwealth penditure which is shown to the satisfaction of the Com- missioner to be included in the costs of the person who carried out the process.

5.

The Commissioner may require any person who claims that a motor vehicle is a Commonwealth product to furnish to him, in such form as he may require, proof of any statement made to him as to any fact necessary to determine the question whether the vehicle is or is not a Commonwealth product and if such proof is not furnished to his satisfaction the question may be determined without regard to that statement.

Commonwealth expenditure.

Proof of Commonwealth

product.