TNAG-0171-FCO40-207-Effect-of-UK-s-economic-measures-on-exports-from-Hong-Kong-1969 — Page 153

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Finance (No. 2) Act 1964

CH. 92

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(3) If the whole or any part of the purchase price is payable twelve months or more after the time when the property in the goods passes, the price shall be reduced for the purposes of this aragraph by an amount representing the discount which would chargeable for obtaining payment at that earlier time at a rate of interest equal to the bank rate then prevailing.

Relevant consideration : hiring

3.-(1) Where the relevant transaction is the exportation of goods under a contract for the hiring out of those goods, or the hiring out of the goods before or after exportation, the relevant considera- tion shall, subject to this paragraph, be the aggregate of the rental payable under that contract or hiring.

(2) If the terms of the hiring or contract of hiring are such that the person from whom the goods are hired bears any of the following, that is, any freight, insurance or other costs, charges or expenses incurred in respect of the goods after they leave the port or place of export, the aggregate of the rental shall be reduced for the pur- poses of this paragraph by an amount reflecting the burden thus assumed by that person.

In this sub-paragraph, the reference to costs, charges or expenses incurred in respect of the goods after they leave the port or place of export does not include, where the goods are hired out after being exported, any expenses relating to the hiring out.

(3) Any instalment of rental payable twelve months or more after the time when possession of the goods passes shall be reduced for the purposes of sub-paragraph (1) of this paragraph by an amount representing the discount which would be chargeable for obtaining payment at that earlier time at a rate of interest equal to the bank rate then prevailing.

(4) Where goods are hired out for an indefinite period the relevant consideration shall be the rental received by the applicant subject to any reduction to be made under sub-paragraph (2) of this para- graph, and payments on account of rebate in respect of such rental may be made from time to time as the rental is received.

Determination of value

4.-(1) Subject to the following provisions of this Schedule, the value of the goods shall be taken to be the price which they would fetch at the time of export on a sale in the open market between buyer and seller independent of each other.

(2) For the purposes of this paragraph, the price shall be deter- mined on the assumption that the buyer will bear freight, insurance and all other costs, charges and expenses incurred in respect of the goods after they leave the port or place of export.

(3) Where the relevant transaction is the exportation of goods which are sold after being exported-

(a) the date as at which the goods are to be valued under sub- paragraph (1) of this paragraph shall be the date when they are sold as part of the relevant transaction, and

SCH. 3