2020 Customs Valuation Guidance: Domestic Sale Principle is history

On 17 September 2020, the EU Commission published its 2020 revision on Customs Valuation. You can download the document and the Compendium of EU Customs Valuation Texts below. Also, we have listed a 3 minute summary of what is contained in it.

What does this Guidance cover?

The guidance covers two board topics: clarifications on the so-called transaction value (1) & royalties and licence fees (2).

On (1), it considers what is a "sale for export" and in particular comments on the "last sale for export" - deleting the previous concept of "domestic sale". The Guidance then provides practical examples of when a sale of goods held under certain special customs situations before entry to free circulation.

As regards "Royalties and licence fees" (2) the guidance defines the scope, contracts and licensing, related to the goods being valued, the condition of sale of the imported goods, royalties paid to third parties, international guidance and gives practical examples.

Transaction value and the question: When is the last sale really the last sale?

The transaction value is the most widely applied method of determining the customs value for imported goods. This is, in a nutshell,....

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