2 Content Transportation Charges Airway transport costs Insurance Loading/handling chargesLoading/handling charges not to be includedDuties and taxes applicable outside the country of importationOther expenses not to be included
3 Transport ChargesThe cost of transportation of the goods to the place of introduction to the customs territory of the country of importation should be included in the customs value.If the transport is free of charges or provided by the buyer to the place of introduction, transport cost should be calculated; the freight rates normally applied for the same modes of transport serve as the base.If the costs outside and inside the country are not clearly divided the cost of transport should be calculated:by deducting from the price paid , the cost of transport within the customs territory of the Country of importation, determined on the basis of the rates normally applied,orby determining the cost of transport to the place of introduction of the goods into the customs territory directly on the basis of the rates normally applied.The goods may have been carried using several different means of transport.
4 Airway transport costWhere goods are transported by air on the same means of transport to a point beyond the place of introduction, transport costs are to be assessed in proportion to the distance covered outside and inside the customs territory of the Country of importationThe European Union practice - Air transport costs to be included in the customs value are set periodically by the Commission Regulation.Express Mail Services (EMS) considered as “goods transported by air”.
5 In the case of goods imported by post, all postal charges imposed up to the place of destination, with the exception of postal charges imposed in the country of importation, are part of the customs value.Private persons, non-commercial consignments imported by post postal charges not included in the customs valueIn case of doubts (non-commercial or commercial goods?) ask for more details and proves!
6 InsuranceThe cost of all insurance effected in relation to the transport and handling of the goods outside of country of importation must always be included in the value for customs purposes.In the case of global insurance a proportionate amount of the premium should be included in the customs valueCosts of insurance to cover risks, other than risks in transport to the port or place of introduction, should not be included.
7 How to divide the Insurance to outside and inside the country of importation? (e.g. CIP) If no any reasonable proves – whole insurance to be included in the customs value
8 Loading and Handling Charges foreign port charges,loading chargesdemurrage charges at foreign ports,If the cost of unloading at the place of introduction can be distinguished on the relevant documentation it does not form part of the customs value and may be omitted.(Demurrage is an extra charge paid as compensation for delaying a ship caused by the person chartering it failing to load it before the time of scheduled departure).
9 Charges Not to be included Loading/HandlingCharges Not to be includedAny weighing costs borne by the importer at destination, not forming part of the price paid or payable for the goods, are not to be included.Expenses incurred in connection with the handling or delivery of goods after their arrival at the place of introduction, such as port dues or landing charges, are not to be included.
10 Duties and Taxes Applicable outside the Country of Importation Where the imported goods are subject to duties and taxes applicable outside the Community such duties and taxes are to be included in the customs value.The cost of these duties and taxes are paid by the seller and therefore they are part of the price paid or payable for the goods. Any claim for a reduction in the customs value on the basis that the goods have been or will be relieved from such duty/taxes can be allowed. Satisfactory evidence should be presented! Any claim for a reduction in the customs value on the basis that the goods have been or will be relieved from such duty/taxes can be allowed. This can be done where satisfactory evidence is presented that the benefit of such relief will be passed on to the buyer.
11 Other Expenses not to be included charges for construction, erection, assembly, maintenance or technical assistance, undertaken after importation of imported goods such as industrial plant, machinery or equipment;customs duties and other taxes payable in the Country of importationa charge for the right to reproduce the imported goods in the Country of importationbuying commissions (fees paid by an importer to an agent for the service of representing him/her in the purchase of the goods being imported);
12 Other Expenses not to be included transport charges after importation into the customs territory of the Country of importationcharges for interest under a financing arrangement entered into by the buyer and relating to the purchase of imported goods provided that:- the financing arrangement has been made in writing; and- where required, the buyer can demonstrate that:such goods are actually sold at the price declared as the price actually paid or payable;andthe claimed rate of interest does not exceed the usual rates in the Country of importation
14 Application of the Valuation Rules in Particular Cases
15 Content Sale on auction Place of introduction General informationCombined purchasingLost or damaged goodsPrivate importationHire purchasingRental agreementSecond hand or used articlesSuccessive saleSale on consignmentSale on auctionPlace of introductionInvoices and payment in foreign currenciesRate of exchangeFixed Rates
16 Price actually paid or payable General infoThe majority of consignments will be be valued by the transaction value method+ Commissions, cost of containers, packaging, assists, royalties & licenses, processed of resale ,transpiration, insurance, “outside” duties, loading, handling…- Transportation after importation, assembly after importation , buying commission, “in-land” dutiesPrice paidSaleSale for exportPrice actually paid or payableNo exclusions
17 Combined PurchasingCombined purchasing occurs where a large consignment of goods is purchased in a single transaction.If a quantity of that consignment is then declared for free circulation into the Country of importation, the value for that quantity by the ratio to the proportion of the total price and quantity purchased.
18 Lost or Damaged GoodsIf a part of consignment was lost or damaged, the apportionment of the price actually paid or payable is permitted if:Goods were lost/damaged before their release into free circulationIt must be irretrievable loss of goods -they can not be used by anyone , therefore no stolen goods , which may continue to be used
19 The price was reduced based on commitment in the purchase agreement prior to the release of goods for free circulation (for example , exposing a new invoice or credit note)Damages are not already reflected in the relevant contract of sale ( e.g. imported fresh fruit includes in the certain percentage that can be damaged/spoiled during transport)the price adjustment made later than 12 months from the date of release of the goods into free circulation is not acceptable. This point in time must be established in an appropriate form ( e.g. by a corresponding agreement between buyer and seller ). The credit note document is , however, insufficient as the proof ( can be supported e.g. by bank statement , proof of payment ).
20 In case that goods are insured against damages, the customs office may take into account a discount from the seller or price of damaged goods designated by insurance company or other authorized body.the customs value of the goods that came with shortcomings or defects, or which does not correspond to the order or agreement (other goods, design, color, size,) can be reduced on the basis of discounts provided by the seller (a new invoice or credit note with a reduced price), which can become the basis for the calculation or recalculation of the customs value.
21 ExampleImporter ordered trousers of certain sizes. At the time of importation (or after – at the time of unpacking) it was found that trousers have been delivered only in extra large numbers, which are difficult to sold. The buyer received 50% discount; seller issued credit note that may be used as a basis for reduced customs value (Credit not to be accompanied by a bank statement and proof of payment).
22 Private ImportationsIn the case of goods imported for the private use of the importer and not for sale, whether imported in accompanied baggage or otherwise, the customs value is established using the normal customs valuation methods
23 Hire Purchasehire purchase contracts, ownership of the goods passes automatically to the hirer once all the payments specified in the contract have been met.When goods are sold on certain hire purchase contracts, ownership of the goods passes automatically to the hirer once all the payments specified in the contract have been met.This should be treated as a contract of sale. Where the interest is clearly marked it should be excluded from the customs valueCertain hire or leasing contracts include an option to purchase the goods. When such an option is exercised before the material time for customs purposes the price actually paid or payable under the option may be used to determine the customs value.Otherwise, the customs value is to be determined by proceeding sequentially through the alternative valuation methods.
24 Rental AgreementsThe alternative methods of valuation to the transaction value method are to be applied to goods imported under a rental agreement.
25 Second-Hand or Used Articles Where second-hand or used articles are the subject of a sale, and the conditions for transaction value are satisfied, that method of valuation is to be applied whether the goods are imported as commercial or for private use.In circumstances where no sale price exists, the transaction valuation method cannot be usedAlso, where the article is imported by a person in whose possession and use it has been for an appreciable period prior to importation, the transaction valuation method cannot be used. The value is to be determined by proceeding sequentially through the alternative valuation methods.
26 Successive SalesThis applies where goods have been the subject of a number of sales prior to importation. In such cases, the last sale occurring in the commercial chain prior to the introduction of the goods into the customs territory of the Country of importation is to be considered as the sales price for customs valuation purposesAlternatively, a sale taking place in the customs territory of the Community before entry for free circulation of the goods can be considered the sales price for customs valuation purposes.
27 However, where the valuation declared is based on an earlier sale, that may be accepted as the basis for valuation only if it can be demonstrated that the transaction in question involved the sale of goods for export to the Country of importationProves that may demonstrate that the goods were sold for export to the Country of importation:the goods are manufactured according to Community specifications or are identified, according to the marks they bear, as having no other use or destination; orthe goods were manufactured or produced specifically for a buyer in the Country of importation, orspecific goods are ordered from an intermediary but are shipped directly to the Country of importation from the manufacturer.
28 Goods Imported for Sale on Consignment Trading arrangement in which a seller sends goods to a buyer or reseller who pays the seller only as and when the goods are sold. The seller remains the owner (title holder) of the goods until they are paid for in full and, after a certain period, takes back the unsold goods. Also called sale or return, or goods on consignment.These goods are exported to the Country of importation for sale at the best price obtainable for the consignor in the country of exportation.Due to the absence of a price paid or payable the customs value must be established by proceeding sequentially through the alternative valuation methods
29 Goods Imported for Sale by Auction In the case of importation of goods (paintings, artefacts, cars and other articles) imported for sale by auction, the normal valuation rules apply.Due to the absence of a price paid or payable, the customs value be established by proceeding sequentially through the alternative valuation methods.
30 Place of Introduction Standard Place of Introduction For the purposes of establishing the transport, handling and insurance charges to be included in the customs value, the place of introduction should be established:for goods carried by sea, the port of unloading, or the port of transshipment certified by the customs authorities as the port of introduction;for goods carried by rail or road, the place where the first customs office of the country of importation is situated; for goods carried by air, the place where the land frontier of the customs territory of the Country of importation is crossed.
31 goods may be introduced into the customs territory of the Country of importation then carried by sea to a destination in another part of that territory. In these circumstances, the customs value should be determined by reference to the first place of introduction into the customs territory of the Community.
32 Invoices and Payments in Foreign Currencies Where factors used to determine the value of goods for customs purposes are expressed in a currency other than the Euro, the rate of exchange to be used is the periodic rate established in accordance with the customs legislation of the country of importation;In the EU:Articles 168 to 172 of the Customs Code Implementing Provisions (CCIP). reflect effectively the current value of currencies in commercial transactions;- are published by the competent authorities of the Member States; andapply during a fixed period.The significant features of the provisions are that rates of exchange used indetermining the customs value are fixed monthly and if no significant fluctuation onthe exchange markets affects them ( Article 171(1)), they remain unchanged fora month, and that a special provision exists with regard to establishing exchangerates to be used with periodic declarations.Insofar as the rates of exchange are fixed as much as fourteen days before they enterinto use and normally apply unchanged for one month, the rules facilitate theoperation of simplified entry procedures.
33 Establishing the Rate of Exchange The rates of exchange quoted by the Central Bank on the second last Wednesday of each month are used for customs valuation purposes for the following calendar month.Tolerance limit (5% above or below); In cases where the tolerance limits are exceeded, the revised rates and operative dates will be posted
34 Publication of Rates of Exchange Details of the rates to be applied in a particular calendar month are posted by the state authorities This list of periodic rates of exchange is to be displayed for the information of the public in offices where Customs entries are presented.
35 Payment Made At Fixed Rate Of Exchange An invoice may be made out in Euro but indicates that payment is to be made in foreign currency at a fixed rate of exchange with a specific declaration to that effect being made on the entry.In case that customs are satisfied as to the “bona fide” of the transaction, the calculation can be made.This will be done by converting the national currency into foreign currency at the fixed rate of exchange and re- converting the resulting figure into national currency as indicated in the customs legislation.
36 Valuation Rules for Specific Customs Procedures Specific provisions exist relating to certain customs procedures where goods are released for free circulation after being assigned a different treatment or use, for example Inward Processing.
37 Specific customs procedures Customs value declaration
38 Content Customs warehousing Inward processing Outward processing Release of goods in advanceDeclaration of customs value
39 Valuation – Customs Warehousing Type D & E Warehouses ( private customs warehouses, which means that only the administrator /warehouse keeper is allowed to store goods in them)Value established at time when the goods were placed under the customs warehousing arrangements, the value of the goods at that time should be applied. However, upon the importer request, the value at the time of release for free circulation may be accepted.
40 Other Types: The value to be taken is the value determined at the time the goods were released for free circulation.The costs of warehousing and of preserving goods while they remain in the warehouse need not be included in the customs value if they are shown separately from the price actually paid or payable for the goods.Paragraph 7.8 concerning successive sales may be applied when goods are being entered for the warehousing procedure or at the time the goods are being released for free circulation, as appropriate
41 Inward Processing the suspension system or the drawback system . If a product was sold on the customs territory of the Country of importation, the customs value is usually determinate by transaction method;No sale – alternative methodsA customs debt related to imported goods :- incorporated in processed products that were released into the free circulation in the country of importation- Goods that did not undergo processing operation in the country of importation- Valuation based on the price of goods declared at the time of their entry into the inward procedure ,- exception - location of the compensating products in a free zone or free warehouse where the customs debt is calculated according to relevant provisions- Processing costs means all costs incurred in the production of processed products
42 Outward ProcessingBased on commercial contracts - procedure or adjustment or reparation of goods according to owner requirements and for its own account outside of the country where the owner of goods is basedthe cost of processing / adjustment or reparation of the goods imported back to the customs territory is considered as base for valuationIf the goods contain goods from imported to the country of processing from the third country, these are considered as the part of the customs valueThe additions to the customs value to be included (transportation, insurance handling...)
43 Release of Goods in Advance of Final Determination on Value Where doubts exist as to the accuracy of declared valuation , release of goods should only be refused or unduly delayed in the most exceptional circumstances (e.g. suspicion of fraudulent activity).In normal circumstances, goods should be released on provision of a suitable. In this context, it is paramount that the level of security/deposit taken should be sufficient to cover the potential duty at risk.
44 Customs Value Declaration Subject to certain exemptions, all consignments in excess of €10,000 require the production, with the relevant customs entry, of a declaration of particulars relating to the customs value of the goods being imported.The declaration is used where there is a price actually paid or payable. Where appropriate, this form may be supplemented by one or more continuation sheets
45 Where, exceptionally, there is no price actually paid or payable, the requirement for a customs value declaration form may be not claim and an appropriate declaration, supported by documentary evidence, should be made on the entryIt should be noted that the special declaration on the entry is only appropriate in cases where the transaction value method is not available at the time of entry and a price will not be available in the future.It should NOT be used in cases where goods are cleared on security of duties, pending production of satisfactory evidence of value, and a price will be available for declaration to Customs later. Such cases should continue to be dealt with in accordance with paragraph 13 relating to release of goods in advance of determination of the amount of duty payable.