Customs value is?
Customs value is the value of the goods and almost all costs arising outside the European Union. Customs value is maintained when you customs clear good in the European Union.
The calculation of the customs value is through an international treaty concluded by the countries of the WTO. These provisions are in force since 1 July 1980 in the EU and are now included in the former CDW and the current DWU.
The determination of the customs value does not happen according to a single method but by the following six methods in the order as indicated.
Transaction value of the imported goods.
Actual price paid or payable for the goods when sold for export to the customs territory of the Union ( article 70 DWU).
Transaction value of the identical goods.
The price of identical goods on or about the same time have been exported to the customs territory of the Union as the goods being valued ( article 74, paragraph 2, point a, DWU)
Transaction value of similar goods.
At or about the time that goods to the customs territory of the Union are as the goods being valued ( article 74, paragraph 2, point b, DWU)
Deduction method (hindcasting method)
The value based on the unit price at which the imported goods or identical or similar imported goods into the customs territory of the Union in the largest accumulated quantity are sold to persons that are not connected to the sellers. ( article 74, paragraph 2, point c, DWU)
Method of calculated value (cost plus method)
This method is the cost of production in the country from which the goods are exported. The calculated value consists of the sum of:
– the production costs
– amount for profit and operating costs that such selling is customary for export to the Union.
– The cost of transport, insurance and of acts during transport to the customs territory of Union. ( article 74, paragraph 2, point d, DWU)
Fall-back method (reasonable means)
When using this method, the prior five methods reviewed with reasonable flexibility. ( article 74, paragraph 2, point d, DWU)
For information, please consult the Manual Customs .
How important is the customs value.
The customs value is used when customs clearing your imported good in the European Union.
“Mr. Jansen has the latest model car bought in America for a price of € 25,000,-. The car dealer in America is willing to transport the car for that rate until reaching the port in America. Also to handle the customs documents in America for Mr. Jansen.
Mr. Jansen pays the ocean freight and insurance to the port in Rotterdam. On the invoice the INCOTERM FOB is mentioned. During customs clearance Mr. Jansen gives the invoice value by as a customs value.
Do you know what Mr. Jansen has done wrong?
A lot of causes related to customs value usually ends up in a fine. A wrong customs value provided can have u huge impact on your business.
If you want to know how we can support you.
We know how to determine the customs value.