Customs Valuation

Introduction

Customs valuation involves determining the economic value of goods declared for import.

Together with origin and classification, the customs value provides the basis for calculating the amount of duty payable on the goods (‘customs debt’ under EU law). Normally this is a percentage of the customs value.

There are 6 valuation methods:

1. transaction value method
2. transaction value of identical goods
3. transaction value of similar goods
4. deductive method
5. computed method
6. fall-back method.

The main method used is transaction value. This comprises the total amount paid (or to be paid) for the imported goods (Article 70 of the EU customs code). 

The transaction value is subject to certain additions (Article 71) and deductions (Article 72). 

If the transaction method does not apply, the other valuation methods would be applied in sequential order, as presented above (Article 74).

International rules

• The principles of customs valuation are set out in the WTO’s ’s Customs Valuation Agreement
• For guidance on how to interpret and apply the Agreement at international level, see the Technical Committee instruments listed in the World Customs Organization’s customs valuation compendium
• The international forums for customs valuation are the WTO’s Committee on Customs Valuation and the WCO’s Technical Committee on Customs Valuation.

EU legislation

The rules in the Customs Valuation Agreement have been transposed into EU customs legislation as follows:

• EU customs code (Regulation 952/2013) – Articles 69 to 76
• Regulation 2015/2447 – Articles 127 to 146, Article 347 and Annexes 23-01 and 23-02
• Regulation 2015/2446 – Article 71
• Regulation 2016/341 – Article 6.

EU countries’ customs authorities are responsible for implementing these EU rules on their territory.

Guidance

Guidance on customs valuation is set out in the EU Customs Valuation Compendium, including:

• interpretative notes on customs valuation
• conclusions and commentaries on specific valuation topics (see recently adopted guidance not yet integrated into the Compendium)
• an overview of rulings from the EU Court of Justice in the customs valuation area (for the full official version of the rulings, see the Court of Justice website)
• index of instruments issued by the Technical Committee.