190 REPORT—1905. 
dues, as well as the importer’s profits, while the value of the latter is 
returned as the sale price in the country of origin in accordance with the 
South African Customs Regulations, and excludes such items as freight, 
insurance, vc. In the case of Cape Colony, when goods are purchased in 
the open market and exported to another member of the Customs Union, 
the cost price in the country of origin is obtained if possible ; if not, 
one-third of the local value is deducted to equalise with goods which have 
not left bond. This is done for the purpose of distributing the duties 
equitably among the colonies. 
Australia.—In the case of the Australian Commonwealth, the value of 
the goods is taken to be the fair market value in the principal markets 
of the country whence the goods were exported. Ten per cent., as covering 
insurance, freight, &c., is added to such market values for statistical 
purposes, 
Canada.—In the case of Canada, the Canadian Customs Law requires 
that importers of dutiable goods shall enter them for duty purposes at the 
fair market value at which similar goods are sold for home consumption 
in the ordinary course of trade in the principal markets of the country of 
export, and at the time of export direct to Canada. The declared values 
are subject to review at the ports of entry by appraisers, and subsequently 
at Customs headquarters by the checking branch. Any changes, however, 
which may be ordered to be made for Customs purposes by such appraisers 
or by the checking branch are not recorded for statistical purposes. 
Respecting free goods, the values given in the Canadian returns are those 
declared by the importers, and represent, as a general rule, the price paid 
for the goods in their condition ready for shipment to Canada from the 
country of purchase. 
With reference to the definition of the term ‘current prices,’ it may 
be added that the Customs authorities of Cape Colony have, the Com- 
mittee are informed, dealt with the question of differential values which 
appear in the declarations as the result of a closed market. By a ‘closed 
market’ is meant a case where one importer has a preferential position 
as the agent for some article which he is able to obtain at a lower rate 
than any other importer. The Customs authorities, however, require that 
the value of goods imported should be returned by all for duty purposes 
at the same price—namely, the open-market price—and consequently the 
agent of any firm has to pay on the same value as other individuals im- 
porting at the open-market price. Thus if firms have invoiced goods to 
their agents at the cost of production, the Customs authorities refuse to 
accept such a declaration of value. 
Lxports.—Similarly, with regard to the estimation of the value of 
exports, a declaration is required from the exporter of the value of goods 
shipped, but in this case greater use is made of official values. One 
serious difficulty consists in the fact that many goods are shipped on con- 
signment for sale, and their value can only be determined when the goods 
are marketed. This practice of shipping on consignment prevails, the 
Committee are informed, to a considerable extent in the case of colonial 
produce, such as cattle, wool, and other articles, the value of which may 
be considerably more or less than what was estimated by the exporter at 
the time of shipment. 
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