Samcor (Manufacturing) (Pty) Ltd v Commissioner for the South African Revenue Service

Samcor (Manufacturing) (Pty) Ltd imported motor vehicle components from Japanese manufacturers, Mitsubishi and Mazda, under licensing, technical assistance and distribution agreements which required payment of royalties and licence fees. In 1983 the Commissioner for SARS made a determination under s 65 of the Customs and Excise Act 91 of 1964 that such royalties and fees had to be added to the transaction value of imported goods under s 67(1)(c), thereby increasing customs duty. Samcor did not appeal this 1983 determination. In 1996 Samcor requested the Commissioner to amend or review the 1983 determination, arguing that the royalties and fees were not dutiable. On 9 September 1997 the Commissioner replied, stating that s 67(1)(c) applied and that the royalties and fees had to be added to the transaction value. Samcor treated this letter as a new determination and appealed to the High Court. The High Court dismissed the appeal on the merits. Samcor then appealed to the Supreme Court of Appeal.

The appeal was dismissed with costs.

The case clarifies that a refusal by the Commissioner to amend or review an existing customs value determination does not constitute a new determination appealable under s 65 of the Customs and Excise Act. It underscores the finality and continuing force of value determinations unless properly appealed or formally amended, and limits the use of declaratory relief to circumvent statutory appeal mechanisms.