Utsch Lanka (Pvt) Ltd., and Another vs. Deputy Director of Customs and Others – sllr 2011 volume 1 page 101

The case between Utsch Lanka (Pvt) Ltd (the 1st Petitioner) and Deputy Director of Customs and others (the Respondents) addressed the issue of the correct tariff classification of imported aluminium blank plates, the justification for charges of misdescription and undervaluation, and the inclusion of royalty payments in customs valuation. It was held that the imported blanks were not misclassified with intent to defraud, and that royalties for technology, expertise, and training under a licensing agreement are not directly related to the imported goods nor a condition of sale. The principle reaffirmed was that customs duties are to be calculated solely on the transaction value of goods at importation unless expressly provided otherwise. Reference was made to relevant sections of the Custom