Valuation of goods for customs purposes

The primary method of valuing goods for Customs purposes is the "transaction value", taking as its starting point the price actually paid or payable for the goods when sold for export to the country of importation.

Usually this price equates to the invoice value. The customs value must always include the cost of insurance and transportation of the goods to the place of introduction into the EU.

In addition it may also have to include elements not included in the invoice price such as assists and royalties paid. When the transaction value method of valuation is not applicable for example, where goods are on consignment, where the invoice price is not arms length - five other valuation methods are available.

Therefore when importing, it is advisable to consider several key issues including:

  • Are you using the most favourable customs valuation method?
  • Have you checked that, for inter-company transactions, the transfer pricing used satisfies customs valuation rules?
  • Are you claiming all allowable deductions from the dutiable price eg. deductions for post-import installation work or technical assistance?
  • Have you considered the customs duty consequences of royalty, licence fee, or cost sharing arrangements with non-EU suppliers?
  • Assistance given to non-EU suppliers may have customs duty consequences.

For further information, please download the following: