The customs value is essential for calculating the amount of customs duties. Various elements can influence the customs value, such as transport costs, royalties, or a discount. It becomes particularly complex when multiple transactions are involved in a chain or in the case of inter-company transactions. These factors often lead to significant debate regarding the determination of the customs value.
The transaction value is often the basis for calculating the customs value. Certain elements must be added, while others may be deducted.
It is customary to use the invoice price as the starting point for calculating the customs value. This invoice price must be adjusted appropriately, depending on several factors. An important consideration is the Incoterm applied.
Transport and insurance costs are the most common additions and deductions. However, the legislation includes additional elements.
1. Determine whether additions are applicable
Transport and insurance costs are the most common additions. These costs depend on the Incoterms. There may also be other costs that need to be added, provided they are not already included in the sale price. Some elements that must be added under certain conditions include:
There is often considerable debate, particularly regarding the addition of royalties and license fees.
2. Identify which elements may be deducted
There are also scenarios where the invoice price includes all costs up to the point of destination (within the country of import). For instance, under the DDP (delivered duty paid) Incoterm, the invoice price might already include transport costs incurred within the EU and even import duties.
The deductible elements are listed in the legislation. However, it is not mandatory to deduct these elements. A key condition is that these costs must be distinguishable from other cost components on the invoice. For example, if transport costs incurred within the EU are deductible, the exact amount of those costs must be identifiable.
Deductible elements include:
