Samcor (Manufacturing) (Pty) Ltd, part of the Samcor Group, imported motor vehicle components from Japanese manufacturers Mitsubishi and Mazda under various technical assistance, manufacturing, and licence agreements which required payment of royalties and fees. In November 1983, the Commissioner for the South African Revenue Service determined under s 65 of the Customs and Excise Act 91 of 1964 that such royalties and fees were dutiable and had to be added to the transaction value of imported goods in terms of s 67(1)(c). Sigma, Samcor’s predecessor, did not appeal this determination. Years later, following changes in excise duty legislation and a ruling allowing refunds for certain errors, Samcor requested the Commissioner to amend or review the 1983 determination, contending that the royalties and fees were not dutiable as they were not paid in respect of imported goods. On 9 September 1997 the Commissioner replied that s 67(1)(c) applied and that the royalties and fees remained dutiable. Samcor treated this letter as a new determination and appealed to the Transvaal Provincial Division, which dismissed the appeal on the merits. Samcor then appealed to the Supreme Court of Appeal.