Customs value of damaged goods

If goods have been damaged prior to lodging the customs declaration, the reduction in their value in relation to the original transaction price can be taken into account in determining their customs value. In such cases, the value determination depends on the terms of delivery agreed upon by the buyer and seller, and on the documents presented by the holder of the goods to Customs.

  • If the seller bears responsibility for the damage caused to the goods, the transaction price can be lowered and the customs value can be corrected based on the compensation that the buyer receives from the seller. For example, a credit note is accepted as proof.
  • If the damage has occurred during transport, loading, warehousing or other such activity, there may for example be a damage report drafted by an insurance company expert. If the report contains an estimate on the extent of the damage as percentage, the figure can be used in assessing the revision of customs value.

In some cases, the insurance company claims the goods and sells them to the original buyer. Such cases involve new sales, and the price charged by the insurance company can be used as the basis of the customs value.