E.A.P.Network (Private) Ltd. v. Director General of Customs et al. – NO.18/2009-2009

In the case between E.A.P. Network (Private) Ltd. and the Director General of Customs, Sri Lanka Customs (among others), the court addressed whether license fees paid for the telecast of television programs, recorded on imported tapes, formed part of the dutiable value for customs purposes under Sri Lankan law, and whether a customs declaration excluding such fees constituted a false declaration. It was held that the license fees are an integral component of the customs value required to be declared and that failure to include this amount resulted in a false customs declaration. The legal principle reaffirmed is that all elements contributing to the imported goods’ value, including intangible rights such as license fees, must be disclosed under the Customs Ordinance and related legislation