When there is economic reasoning behind a reduced price of goods, customs fees will be calculated according to the price paid

Cellular operator purchased cell phones and imported them to Israel while some of the devices were purchased, for promotional and spare parts, at a reduced or free cost. The Customs Authority required to calculate the value of the transaction in accordance with the value of the products and not in accordance with the reduced price at which they were actually purchased. The court ruled that customs fees should be paid in accordance with the actual amount paid and not in accordance with the normal goods price. Customs payment is in accordance with the percentage of customs stipulated in regulations double the value of the goods, except for goods that are subject to customs exemption law. In addition, some goods also have a sales tax, which is similarly calculated. In principle, only when the value of the goods cannot be estimated according to the value of the transaction - the price actually paid or payable under the transaction, for example when the consideration cannot be calculated or there are conditions for payment, the customs authority may assess the goods according to similar products. Here, the cellular operator purchased the cell phones as part of a deal where he received some of the discounted promotional devices while pledging to give them to public opinion leaders and renters for free. In addition, they received 5% cost-free devices, in exchange for releasing the supplier from warranty duties on the products he provided and subject to the additional devices to not be sold to customers, is an economic transaction for all purposes, where the value of the supplier's warranty removal is embodied in the price of the devices supplied free of charge. Therefore, the price of the instruments for customs purposes should be examined according to the price actually paid and not according to the value of the goods.