Providing value details

As a rule, the goods are bought from a seller then brought into the territory of the EU, e.g. into Finland. The seller draws up an invoice for the goods prior to their importation into the EU territory.

When the customs value is based on purchase or sale

When the customs value of the goods is based on purchase or sale, an invoice must be presented for the goods on import, provided under “Additional documents” with the code “N380 – Commercial invoice”. As the nature of transaction, provide the code “11 – Outright purchase/sale” in the customs declaration. The method of customs valuation is the transaction value, provided under “Valuation method” with the code “1 – Transaction value of the imported goods”.

Read more about determining the customs value on the basis of the transaction value.

Goods can be brought into the territory of the EU even when it is not a case of purchase or sale, i.e. when the goods are not sold to the territory of the EU. In that case, the import of the goods does not involve any normal purchase or sale, and there is no invoice for the goods.

When the customs value is not based on purchase or sale

When the customs value of the goods is not based on purchase or sale, provide in the customs declaration an additional document with which you present the basis of the value of the goods or a calculation of the value of the goods to Customs. You can provide the additional document e.g. with the code “1ZZZ – Other document”.

Select the nature of transaction that best describes the transaction. Select e.g.

• ”22 – Replacement for returned goods”, if you have received goods as replacement for defective goods you have returned.
• ”34 – Transactions involving transfer of ownership without financial compensation”, if the ownership of the goods has been transferred to you without financial compensation.

Read more about providing the code for nature of transaction.

The method of customs valuation cannot be transaction value, because the value of the goods is not based on purchase or sale. Provide the valuation method you use with one of the following codes:

• ”2 – Transaction value of identical goods”
• ”3 – Transaction value of similar goods”
• ”4 – Deductive value method”
• ”5 – Deductive value method”
• ”6 – Value based on the data available (“fall-back” method)”.

Read more about the methods for determining the customs value.

 

• If the value of the goods on the commercial invoice is indicated in a currency other than the euro, provide the value in the invoice currency.
• If more than one currency has been used on the commercial invoice or if the commercial invoice for the goods consist of several invoices in different currencies, always provide the euro as the currency in the customs declaration.
• If you have to convert the transaction price into euros, always use the conversion rates determined by Customs.

You can provide 0 euros as the value of the goods in the case of free-of-charge repair, e.g. repair under guarantee (warranty), diplomatic goods/mail or a funerary urn containing ashes or a coffin containing a body.

In some cases, the commercial invoice cannot be used as the basis for the customs value. An example of this is the relationship between the seller and the buyer. Relationship refers e.g. to an economic dependence between the seller and the buyer. The relationship may have a bearing on whether the transaction value can be used as a basis for the customs value. In such situations, you should contact Customs Business Information, who will find out if the transaction value can be accepted as a basis for the customs value in your case. Read more about the effect of the relationship between the buyer and seller on the customs value.

When the customs value exceeds 20 000 euros, you pay customs duty and the import is commercial, you must always provide the valuation indicators in the customs declaration. The valuation indicators are provided by answering questions.

There are four questions concerning the valuation indicator:

• Does a relationship exist between the parties, regardless of whether it has influenced the price?
  • If the buyer and seller are not related, answer the first question by selecting the option button “No” in the Customs Clearance Service or by providing the code “0” in message exchange. Then you can proceed with the declaration
  • If the buyer and seller are related, answer the first question by selecting the option button “Yes” in the Customs Clearance Service or by providing the code “1” in message exchange. You must also answer three additional questions.
• Are there any restrictions as to the disposal or use of the goods by the buyer in accordance with point (a) of Article 70(3) of the Union Customs Code?
• Is the sale or price subject to some condition or consideration in accordance with point (b) of Article 70(3) of the Union Customs Code?
• Is the sale subject to an arrangement where a part of the proceeds of any subsequent resale, disposal or use of the goods will accrue directly or indirectly to the seller?

Example: The imported goods involve a relationship between the parties but no situation according to the second, third or fourth question. You have answered the first valuation indicator question “Yes” (Customs Clearance Service) or “1” (message exchange) and the other questions “No” or “0”. In message exchange and in the Customs Clearance Service, the code combination “1000” will be displayed.

In the customs declaration, items to be added to the transaction price are provided using value type codes, if these items are not already included in the transaction price. If the transaction price includes items that are not part of the customs value and can be itemised, they can be deducted from the customs value using value type codes that reduce the transaction price. The terms of delivery usually affects the use of value type codes. The terms of delivery determine whether the seller or the buyer is responsible e.g. for the transport costs, i.e. whether these costs are already included in the transaction price.

In most cases, the terms of delivery affect the use of value type codes. The terms of delivery alone are not sufficient to determine whether the seller or the buyer is responsible e.g. for the transport costs, i.e. whether these costs are already included in the transaction price. The items in the transaction price must be clearly distinguishable and identified based on the documents submitted.

Provide the items to be added to the transaction price with a value type code beginning with A. Select e.g.

• “AK – Transport costs, loading and handling charges and insurance costs up to the place of introduction in the European Union”, if you have received a separate freight bill up to the first point of entry into the territory of the EU.
• ”AD – Packaging”, if you have received a separate invoice for the packaging of the goods for transport.

Provide the items to be deducted from the transaction price with value type codes beginning with B. For example, select “BA – Costs of transport after arrival at the place of introduction”, if the transport costs outside the EU and within the EU are itemised in the freight bill. If you are an operator not registered for VAT, and you have entered value type codes (e.g. code BA) that reduce the customs value to be included in the taxable amount of VAT in the customs declaration, these reduced values must be entered in the taxable amount of VAT with their own value type codes for VAT (e.g. code 3A).

• The price of the goods in the invoice is 1 000 euros. In the invoice, the freight costs are specified as follows: The share of the freight costs outside the EU is 400 euros, and the share of the costs inside the EU is 100 euros. In addition, you have received a separate freight invoice in which the freight forwarder has charged you 300 euros for storing, forwarding and moving the goods. In the customs declaration, enter
  • 1 500 euros as the transaction price
  • as value adjustment item, the freight and unloading costs inside the EU, i.e. 100 euros, with the value type code “BA – Costs of transport after arrival at the place of introduction”
• Please note that when you calculate the statistical value of the example case, you need to include the whole amount of freight in the statistical value, i.e. 500 euros. The statistical value of example 3 would be 1 500 euros. 
• If you are an operator not registered for VAT, provide the share of the costs for warehousing, forwarding and moving the goods for the calculation of the taxable amount of VAT, i.e. 300 euros, with code ”3A – The costs for transport, loading, unloading, insurance as well as other costs related to the importation to the first place of destination in Finland specified in the transport contract.”

Read more about the items to be added to or deducted from the customs value. You will find the codes beginning with A and B used in customs declarations in code list NLC123 – Value adjustment.

Providing the delivery terms

The most common delivery terms are Incoterms, which are commercial terms published by the International Chamber of Commerce (ICC). The delivery terms can also be based on other than Incoterms. The delivery terms define the responsibilities of the buyer and the seller regarding the delivery, goods and costs. In the customs declaration, provide the delivery terms agreed between the buyer and the seller. Read more about Incoterms.

You are importing goods whose transaction price is 400 euros. The delivery terms are “FCA Rotterdam”, so you have agreed with the seller that the seller will pay the freight bill to Rotterdam and you will pay the transport costs for the goods from Rotterdam to Helsinki.

• The transaction price of the goods is 400 euros, but you have received a freight bill indicating that you must pay 200 euros in freight costs, loading charges and insurance costs for the delivery to Helsinki. Enter 400 euros as the transaction price of the goods. In the customs declaration, under “Statistical value”, provide 600 euros as the statistical value of the goods (transaction price 400 euros + transport costs 200).

Annex 23-01 of the Implementing Regulation of the Union Customs Code contains a table determining the percentages of air transport costs to be added to the customs value. In column 1 of the table, check the airport of departure and in column 2, the percentage of total air transport costs to be included in the customs value. Please note that there are separate rules regarding the French overseas departments. Read more in the Commission Implementing Regulation.

Examples on how to use the percentage table

The freight bill you have received may cover the whole consignment even if the consignment contains several goods items. In such case, the freight bill must be split between the goods items. The freight bill may be split according to value or weight.

Example of splitting the freight bill between the goods items according to weight:

The total freight costs are 300 euros and the total weight is 150 kg.

Goods item 1 weighs 100 kg –> The freight costs for goods item 1 are (300/150*100) = 200 euros

Goods item 2 weighs 50 kg –> The freight costs for goods item 2 are (300/150*50) = 100 euros

Example 1: A consignment transported by sea has two goods items. The price of the first item is €500 and the net mass is 100 kg. The price of the second item is €500 and the net mass is 50 kg. The total sum of the commercial invoice is €1000, and the term of delivery in the invoice is “FOB Shanghai.” The transport costs are not included in the transaction price. You have paid the transport costs with separate freight invoices: Shanghai‒Rotterdam €300 and Rotterdam‒Helsinki €100. 

Provide the following information in the customs declaration:

• Enter in section “Price” for each goods item the price according to the invoice: the price of the first item €500 and the price of the second item €500.
• The transport costs to the EU border are €300. In this example, they are divided between the two goods items according to their mass, and are entered as item to be added at goods item level. 
  1.  Enter €200 as item to be added with code AK (€300 / 150 kg x 100 kg) = €200
  2.  Enter €100 as item to be added with code AK (€300 / 150 kg x 50 kg) = €100
• As statistical value, enter for the goods items a value that includes the transport costs up to the Finnish border. In this example also, the statistical value of the freight is divided between the goods items according to their mass. 
  1. €500 + €200 + (€100 / 150 kg x 100 kg) = €700 + €66.67 = €766.67
  2. €500 + €100 + (€100 / 150 kg x 50 kg) = €600 + €33.33 = €633.33
• If you are an operator not registered for VAT and you e.g. declare to the taxable amount of VAT transport costs in the EU territory to a destination in Finland, provide the divided transport costs as items to be added at goods item level.
  1. Enter €66.67 as item to be added with code 3A (€100 / 150 kg x 100 kg) = €66.67
  2. Enter €33.33 as item to be added with code 3A (€100 / 150 kg x 50 kg) = €33.33

Example 2: A consignment transported by sea has two goods items. The price of the first item is €500 and the net mass is 100 kg. The price of the second item is €500 and the net mass is 50 kg. The total sum of commercial invoice is €1000, and the term of delivery is “DAP Jyväskylä.” The transport costs are part of the price. In this example, the seller has separated the freight costs shown in the invoice for different parts of the route: USA‒Rotterdam €400, Rotterdam‒Helsinki €100 and Helsinki‒Jyväskylä €50. 

Provide the following information in the customs declaration:

• Enter for each goods item in section “Price”, the price according to the commercial invoice: price of the first item €500 and the second item €500.
• The intra-EU transport costs are €150. In this example, they are divided between the two goods items according to their mass, and are entered as item to be deducted. 
  1. Enter €100 as item to be deducted with code BA (€150 / 150 kg x 100 kg) = €100
  2. Enter €50 as item to be deducted with code BA (€150 / 150 kg x 50 kg) = €50
• Enter as the statistical value, the value of the goods in which the share of internal freight in Finland (€50) according to the weight of the goods has been deducted from the purchase price. This value includes the transport costs up to the Finnish border.
  1. €500 - (€50 / 150 kg x 100 kg) = €500 - €33.33 = €466.67
  2. €500 - (€50 / 150 kg x 50 kg) = €500 - €16.67 = €483.33
• If you are an operator not registered for VAT and you have declared items to be deducted from the customs value e.g. with code BA, enter the deducted transport costs to the taxable amount of VAT. In addition, enter to the taxable amount of VAT all other costs to be added to the customs value to the place of destination in Finland. Enter the divided transport costs as item to be added a goods item level. 
  1. Enter €100 as item to be added with code 3A (€150 / 150 kg x 100 kg) = €100
  2. Enter €50 as item to be added with code 3A (€150 / 150 kg x 100 kg) = €50

Providing value information when you use additional procedure codes C07, C08, 3RA, F48 or F49
For goods of low value, you can provide a separate customs declaration in the Customs Clearance Service or via message exchange. In a declaration for low value goods, you can’t provide the same value information or value type codes as in a standard customs declaration. 

Alternatively, you can submit the declaration as a standard customs declaration. However, when providing the value information in a standard import declaration there are also exceptions when using the additional procedure codes C07, C08, 3RA, F48 and F49. 

Normally, the price actually paid is entered in the customs declaration under “Transaction price” (Customs Clearance Service) or “Value of the goods item” (message exchange). This can include freight or other costs. In addition, the declaration includes items to be added to the customs value by means of value adjustment items, and values not included in the customs value as items to be deducted. 

The value is declared differently in the customs declaration for goods of low value and in the standard customs declaration in which the additional procedure code C07, C08, 3RA, F48 or F49 is provided. Then only the value of the goods is provided under “transaction price” and “value of the goods item”. If e.g. freight costs are provided separately in the purchase invoice of the goods, the value of the goods without freight costs is entered under “transaction price” or “value of the goods item”. 

The exemption from customs duty for consignments of low value and consignments sent between private individuals is based on the Duty Relief Regulation. The Duty Relief Regulation defines goods of low value and the maximum value per consignment. Neither transport costs nor any other costs are included in the value of the goods. 

Goods consignments of low value are, for example, consignments of goods with an intrinsic value of no more than 150 euros, and the transport costs outside the EU territory are not included in the value. Additional procedure code C07, F48 or F49 is selected for the declaration. However, a consignment cannot always be declared as being of low value. Read more on when you can use a declaration for goods of low value.

Private individuals can send to each other goods consignments free of charge, for example when the goods are sent as a gift. The intrinsic value of such a consignment is 45 euros at most per consignment, and transport costs outside the EU are not included in the value of the consignment. Additional procedure codes used in the declaration are C08 and 3RA. However, consignments cannot always be declared as being goods consignments sent between private individuals. Read more on when you can use a declaration for goods of low value.  

Different additional procedure codes when providing value information

• C07 – Consignments of negligible value the intrinsic value of which does not exceed 150 euros. (Article 23 Council Regulation (EC) No 1186/2009 setting up a Community system of reliefs from customs duty, section 1(2) VAT Act)
• C08 – Consignments sent by one private individual to another. (Articles 25–27 Council Regulation (EC) No 1186/2009 setting up a Community system of reliefs from customs duty, section 94(14) VAT Act, section 88 Act on Excise Duty)
• 3RA – Small non-commercial consignments that are sent by a private individual to another private individual and are worth no more than 45 euros. (Articles 25–27 Council Regulation (EC) No 1186/2009 setting up a Community system of reliefs from customs duty, section 1(2) VAT Act) 
• F48 – Import under the special scheme for distance sales of goods imported from third countries and territories set out in Title XII Chapter 6 Section 4 of Directive 2006/112/EC
• F49 – Import under the special arrangements for declaration and payment of import VAT set out in Title XII Chapter 7 of Directive 2006/112/EC. 

How you provide value information in the customs declaration

Enter under “transaction price or “value of the goods item” the intrinsic value of the goods. 

• If the goods were bought, provide the purchase price of the goods as the value of the goods, excluding e.g. transport and insurance costs (unless they are included in the price and not separately indicated on the invoice).
• If the goods were not bought, provide the intrinsic value of the goods, that is, the price that would have been paid for them if they had been sold.

Provide the transport and insurance costs as follows:

• In the import declaration, provide the transport and insurance costs for goods of low value under “Transport costs to the destination”. 
  • The transport costs cannot be divided in a customs declaration for goods of low value, i.e. the transport costs must always be provide up to the destination.
• Enter in the standard import declaration the transport and insurance costs in the Customs Clearance Service under “Value information of the goods” and via message exchange under “Value adjustment”.
  • If you have entered only the value of the goods under transaction price, provide the freight costs outside the EU territory with value adjustment code “AK – Transport costs, loading and handling charges and insurance costs up to the place of introduction in the European Union”.
    • Note that if you are declaring airfreight; provide them by using the percentage table for airfreight. 

Provide the statistical value as follows:

• The statistical value cannot be declared in import declarations for goods of low value.
• Provide the statistical value in the standard import declaration as a total amount, under “Statistical value for the goods item”. 

How you declare the taxable amount of VAT 

If you are a VAT-registered operator, declare the import VAT to the Finnish Tax Administration. 

If you are an operator not registered for VAT, provide the adjustments to the transaction price so that the taxable amount for VAT can be determined correctly:

• In import declarations for goods of low value, you cannot declare value adjustment items for VAT purposes. The transport and insurance costs can only be entered once in the declaration. This is why the costs must always be provided up to the destination.
• Enter in the standard import declaration the value adjustment items for VAT purposes in the Customs Clearance Service under “Value information of the goods” and via message exchange under “Value adjustment”. Note that if you are declaring airfreight; provide them by using the percentage table for airfreight. Once you have provided the value type codes that reduce the customs value to be included in the taxable amount of VAT (e.g. with code BA) in the customs declaration, these reduced values must be entered in the taxable amount of VAT. If you are an operator not registered for VAT, provide the following information with separate codes for the calculation of the taxable amount of VAT:
• the costs for transport, loading, unloading and insurance as well as other import-related costs up to the first place of destination in Finland specified in the transport contract (code 3A) 
  • the costs for transport, loading, unloading and insurance as well as other costs up to another destination in the territory of the Union that are known at the time when the liability to pay VAT arises (code 3D)
  • other taxes and charges, with the exception of VAT, levied by the State or the Union due to import of the goods in connection with customs clearance (code 3B) 
  • any taxes and other charges payable outside Finland (code 3C)

When declaring free-of-charge goods, the value of the goods must always be provided in the customs declaration. With the nature of transaction, you notify Customs that the goods are free of charge.

Nature of transaction

For free-of charge goods, the nature of transaction can be, for example:

• 21 – Return of goods
• 31 – Movements to/from a warehouse (excluding call-off and consignment stock)
• 34 – Transactions involving transfer of ownership without financial compensation
• 99 – Other transactions which cannot be classified under other codes.

The value of free-of-charge goods

Provide the value of the free-of-charge goods for each goods item as follows:

• Provide the value of the goods under “transaction price” or “value of the goods item”.
  • The value of the goods must be their actual value and, as a rule, the value is determined based on purchase or sale. As for goods that are completely or partially free of charge, the value is determined according to what their price would be if they were sold to the Union.
• Provide the items added to or deducted from the customs value using the appropriate codes. For example, provide
  • “AK – Transport costs, loading and handling charges and insurance costs up to the place of introduction in the European Union”, if the freight of the goods is to be paid for separately.
  • the freight costs under “Transport costs to the destination” in the case of a customs declaration for low value goods.
• Provide the statistical value in euros.
  • Statistical value refers to the price of the goods, including the additional costs, such as freight and insurance, occurring outside the Finnish borders. The taxes and charges levied in Finland are not included in the statistical value. The statistical value can never be 0.
• Under “Additional information” provide the additional information code “FIXXX” and the reason why the goods are free of charge.

You can provide the value of free-of-charge goods e.g. with the additional document “N325 – Proforma invoice” or ”1ZZZ – Other document”.

If you are a declarant not registered for VAT, provide also the following value information

If you are an operator not registered for VAT, provide the adjustments to the transaction price for the calculation of the taxable amount for VAT. Provide the following details with separate codes:

• the costs for transport, loading, unloading and insurance as well as other import-related costs up to the first place of destination in Finland specified in the transport contract (code 3A)
• the costs for transport, loading, unloading and insurance as well as other costs up to another destination in the territory of the Union that are known at the time when the liability to pay VAT arises (code 3D)
• other taxes and charges, with the exception of VAT, levied by the State or the Union due to the import of the goods in connection with customs clearance (code 3B)
• any taxes and other charges payable outside Finland (code 3C).

Provide the nature of transaction using codes in code list CL091 (SAD Box 24).

Provide the values of the free-of-charge goods as follows:

• at declaration header level, the value of the goods as the total price (SAD Box 22)
  • the value cannot be 0 euros

• at goods item level, the value of the goods as the price of the goods (SAD Box 42)
  • the value cannot be 0 euros
• at goods item level, the statistical value and currency (SAD Box 46)
  • Statistical value refers to the price of goods, including the additional costs, such as freight and insurance, occurring outside the Finnish borders. The taxes and charges levied in Finland are not included in the statistical value. The statistical value can never be 0.
• as additional information on the goods item, with the code XXX, the value of the goods and the reason why the goods are free of charge (SAD Box 44).