SUPREME COURT.

Dominion, Volume 4, Issue 937, 3 October 1910, Page 3

SUPREME COURT.

ASSESSMENT OF CUSTOMS. , SAMPLE DISCOUNTS. . ' The .Chief 'Justice; (Sir. Bobert Stout) heard .argument on. Saturday in the : case of .George and Doughty y. the King. The point. at, issue was. the interpretation .of the term "fair market valufe" .as. applied to the- assessment of Customs duties on draper's .samples. From, the . evidence which was taken on the previous; day it apeared' that the Customs Department has: for many years past assessed these articles'at the list prices, ■ whereas the importers have ali'along considered that' the. assessments should have : been Reduced in. accordance "with; the' regular trade discount of about 30 per cent on samples. -The • action. was a test case..' Mr. E. B. Williams, for the plaintiffs, in' .his argument .on / Saturday, relied unon the- words ■: of the Customs Act: (Section. .55)', "fair market value .'in the. usual: and ordinary, .commercial, acceptation of. the'.term at .the 'usual and ordinary, credit when. sold for home; consumption in' England." He argued ■ that r.'hat: the Court had-to consider'was the. ruarkot. value of ■ the articles When 'Separated from the bulk for use as samples, and thus made less saleable. The purpose'for which they had-been thus isolated should 1 not be taken into account.' .' Sir. M. ■ Myer ' (for the Crown) submitted that the sample discount should not be. 'treated as a job-lot discount, but' : rather as a .special "reduction* allowed by. the. ■ exporter to purchasers in New' Zea- . .land in order to induce trade. Special, discounts of, this. character were provided for in Section 59 of the Act; : Judgment ■ was reserved.