New Guidance on Customs Valuation

New Guidance on Customs Valuation

New Guidance on Customs Valuation

The European Commission issued a new version of its guidance Document on Customs Valuation on 25 September 2020. This updated guidance is not legally binding, however, this guidance plays an important role in the interpretation of the EU customs valuation rules and is applied by most EU customs authorities.

In this new version the removal of the domestic sale principle and the incorporation of new examples are the most important changes.

As a consequence of this removal, a sales transaction between two EU residing parties can be regarded as a sale for export. Because of this the transaction can be used as the basis to determine the customs value of imported goods. For international operating companies this results, in many supply chains, in the situation that a later or subsequent sale is elected as the relevant sale for export for EU customs valuation purposes. This sale usually represents a higher value which may lead to an increase of the payable import duties.

You can find more information and the examples in the guidance of the European Commission.

Please be aware that this is a guidance and it is not in place yet. Once this guidance will be in place we will inform you via our website.

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If you require more background information or need advice, please contact one of the consultants at SGS Maco. We are happy to help.

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Customs Consultant

John Sampers