Customs value
The customs value of goods, together with the commodity code and the origin, determines the amount of customs duty to be levied on the goods. It is also generally used as the taxable amount for import VAT.
The customs value can be determined in six different ways. The primary basis for customs value is the transaction value of the goods. The transaction value is the price actually paid or payable for the goods when sold for export to the customs territory of the Union.
If the transaction value cannot be used to determine the customs value, secondary methods will be used in the following order:
1. Transaction value of identical goods
The customs value of imported goods is determined based on the transaction value of goods that are identical to them and sold for export to the EU at the or about the same time.
Identical goods refer to goods produced in the same country that are the same in all respects including physical characteristics, quality and reputation.
2. The transaction value of similar goods
The customs value of imported goods is determined based on the transaction value of goods that are similar to them and sold for export to the EU at or about the same time.
Similar goods refer to goods produced in the same country that are capable of performing the same functions as the imported goods and are imported goods and are commercially interchangeable. The imported goods and similar goods are not exactly the same in terms of their characteristics and component materials. When determining if goods are similar to the imported goods, the quality, reputation and trademark of the goods are taken into account.
3. Deductive value
The deductive value is based on the price of the goods on the internal market.
The starting point for the value is the unit price at which the imported goods or imported identical or similar goods are sold in the internal market of the EU, in the condition as imported, at or about the time of importation of the goods being valued.
If no such unit price is available, the starting point for the value is the sales price of the goods in the internal market of the EU after the time of importation. However, the sale must have taken place as soon as possible, within 90 days, after the import of the goods being valued.
4. Computed value
The customs value is based on the value of material and production, the producer’s or seller’s profit and the cost of transport up to the point of entry into the EU.
The computed value can be applied before the deductive value if the declarant so wishes.
5. Fall-back method
The above-mentioned methods 1–4 can be applied flexibly. The value shall, to the greatest extent possible, be based on previously determined customs values.
Even in this case, the customs value must not be determined on the basis of any of the following:
a) the selling price within the customs territory of the EU of goods produced in the customs territory of the EU
b) a system whereby the higher of two alternative values is used for customs valuation
c) the price of goods on the domestic market of the country of exportation
d) the cost of production, other than computed values which have been determined for identical or similar goods under Article 74(2)(d) of the Union Customs Code
e) prices for export outside the EU
f) minimum customs value
g) arbitrary or fictitious value.
The relationship between the buyer and seller may affect the customs value
When the seller and buyer are related, the relationship may have a bearing on whether the transaction value of the goods can be used as a basis for the customs value. Read more about the effect of the relationship between the buyer and seller on the customs value.
Customs value in the customs declaration
Customs value is one of the value details that must be provided in the customs declaration. If the transaction price or the related adjustment items have been provided in a currency other than the euro in the customs declaration, the sums must be converted into euros based on the confirmed currency rates.
The declarant is responsible for ensuring that the customs value has been calculated correctly. If the customs value has been calculated incorrectly, the import duties and taxes payable on the goods will be too high or too low.
Customs confirms the customs value, and it is shown in the customs clearance decision.
A commercial invoice showing the price of the goods and the delivery terms of delivery, among other things, must be presented for the goods in connection with the customs clearance. The transport costs up to the point of entry into the EU, for example, are also included in the customs value. The point of entry is the location in the customs territory of the EU where the goods are first brought.