Customs value in stock transfers

Consumers and companies alike order their goods increasingly often via e-commerce. E-commerce is an important theme also for Customs as this leads to totally different processes and risks. Media reports reveal large-scale VAT frauds with respect to this, but customs value and the correctness of the commodity code are re-occurring issues in e-commerce. There are, however, plenty of parties that do want to submit their declarations correctly, particularly within e-commerce.

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In addition to challenges with classification, customs value also plays a crucial role. A distinction must be made between actual purchase-sale transactions and stock transfers. A stock transfer occurs when goods are transported to the European Union (EU) before they are sold. The goods are then (temporarily) stored in an EU distribution center, improving delivery speed. When a European customer places an order on the website, the ordered product is shipped from the European distribution center to the customer.

In the case of a stock transfer, the goods have not yet been sold at the time they are brought into the EU. This can create issues when determining the customs value. If a transaction has occurred before the goods are imported, the customs value may, under certain conditions, be based on that transaction value. However, in most cases of stock transfers, no transaction has taken place. The transaction value of the goods then cannot serve as the basis for determining the customs value. In such situations, the customs value must be determined using an alternative method. In practice, the fallback method is often applied. The selling price listed on the online platform is typically used as a starting point for calculating the customs value. However, this selling price is not the actual customs value, as it includes various elements that can be deducted. There is, unfortunately, no "magic formula" to easily determine the customs value from the selling price.

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