Customs value for imported goods

Definition

Customs value represents the economic value of imported goods for customs purposes. In the EU, the primary method is the transaction value: the price actually paid or payable, adjusted by required additions and deductions. If that method cannot be used, further methods apply in a prescribed sequence.

Why does it matter?

The duty rate and customs value jointly determine import duty. Freight, insurance, commissions, royalties or relationships between parties may be relevant to the valuation depending on the case.

Key points

• Assess the purchase price together with the delivery term.
• Document additions and deductions transparently.
• For free-of-charge goods, determine an acceptable valuation method.

Practical example

Goods are sold FCA Shanghai. In addition to the purchase price, the costs required by the valuation rules up to the relevant point are reviewed.

Common mistakes

• Automatically treating the invoice total as customs value
• Including or excluding costs solely because of an Incoterm
• Using a pro forma value for free goods without valuation support