Transaction value in determining the customs value

Add the following items to the transaction value if they are not already included in the price paid or payable:

1. The following items, to the extent that they are incurred by the buyer and if they are not already included in the price paid or payable for the goods:

• commissions and brokerage, except buying commissions
• the cost of containers which are treated as being one, for customs purposes, with the goods in question
• the cost of packing, whether for labour or materials. 

2. The value of the following goods and services where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale for export of the imported goods, to the extent that such value has not been included in the price paid or payable:

• materials, components, parts and similar items incorporated into the imported goods
• tools, dies, moulds and similar items used in the production of the imported goods
• materials consumed in the production of the imported goods
• engineering, development, artwork, design work, and plans and sketches undertaken elsewhere than in the EU and necessary for the production of the imported goods.

3. Royalties and licence fees related to the goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable.

4. The value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller.
5. The following costs up to the place where goods are brought into the customs territory of the EU:

• the cost of transport and insurance of the imported goods
• loading and handling charges associated with the transport of the imported goods.

1. The cost of transport of the imported goods after their entry into the customs territory of the Union.

2. Charges for construction, erection, assembly, maintenance or technical assistance, undertaken after the entry into the customs territory of the EU of the imported goods such as industrial plants, machinery or equipment.

3. Charges for interest under a financing arrangement entered into by the buyer and relating to the purchase of the imported goods. Where required, the buyer must demonstrate that

• the goods are actually sold at the price declared as the price actually paid or payable
• the claimed rate of interest does not exceed the level for such transactions prevailing in the country where, and at the time when, the finance was provided.

4. Charges for the right to reproduce the imported goods in the EU

5. Buying commissions

6. Import duties or other charges payable in the EU by reason of the import or sale of the goods

7. Payments made by the buyer for the right to distribute or resell the imported goods, if such payments are not a condition of the sale for export to the EU of the goods.

Defective goods

An adjustment made by the seller, to the benefit of the buyer, of the price of the goods due to their defective nature may be taken into consideration in the transaction value, if the following conditions are fulfilled:

• The goods were defective at the time of release for free circulation.
• The seller made the adjustment to compensate for the defect based on either a contract between the buyer and the seller or legislation.

Damaged goods

In the case of the loss of part of a consignment or when the goods have been damaged before the goods are released for free circulation, the transaction value can be adjusted downwards in relation to the value of the lost or damaged goods.

The discount must relate to the imported goods. There must be a valid contractual entitlement to the discount at the time of valuation.

A discount can be obtained in three different situations:

1. A discount is available to the buyer and the payment reflecting this discount has been made at the time of valuation (applied discount as reflected in the invoice price).
2. A discount is available to the buyer but the payment reflecting the discount has not yet been made by the buyer at the time of valuation.
3. A discount is not available at the time of valuation (a retroactive offer by the seller).

If the discount has already been indicated in the price paid or payable at the time of valuation, this price is the determining factor.

• A discount already applying at the time of valuation by virtue of the reason or level specified in the sales contract will be recognised if this discount is specified in the documentation provided to the customs authorities at the time of import of the goods.
• It is not essential that the discount is already calculated – although this is normally the case – in the invoice for the goods.

If there is a contractual entitlement to the discount at the time of valuation, it can be recognised, even if the actual amount is not evidenced in the price paid until a later date.

Where the price has not been paid for the imported goods at the time of valuation, it is only possible to determine the discount and the final price from the information available. In this situation, use of the transaction price as the basis for customs value is conditional on a price reduction being granted and on the amount of this discount being determined at the time of valuation.

• If the discount is retroactive (e.g. a quantity discount at the end of the year), it can be taken into account in valuation, if it is proven that there was a valid entitlement to the discount at the time of valuation.

It is not necessary to determine whether a given discount is standard commercial practice or whether it is also granted to other buyers.

The price payable for the goods at the time of valuation shall, as a general rule, be used as a basis for customs value. A price reduction granted after (e.g. at the end of the year) the date of valuation will not be taken into account. There must have been an entitlement to a discount at the time of valuation.

Generally acceptable discounts

• cash discount, i.e. a discount scaled according to the date of payment
• quantity discount to the extent that it concerns the goods being valued
• commercial level discount (re-sale discount)
• regular customer discount
• introductory offer
• model and sample discount
• fair and exhibition offer