Customs Valuation

Establishing the correct customsvalue is essential to calculate the correct duties payable. Mostly it is not easy to determine the customsvalue, because it depends on a large number of factors. First of all, it should be established if the transaction is actually a commercial (buyer-seller) transaction. If for example, the transaction only consists of moving stock, then this is not the case. Secondly it is important to identify whether payments are made which are not directly related to a specific shipment, but may affect the customs value (for example, research and development (R & D) effected costs).

Also factors like intercompany deliveries, discounts, royalties and costs of supplied menas of production (such as molds) have an effect on the customs value.

Also delivery terms (INCO-terms) play an important role. These terms determine whether or not (the correct) amount of freight- and insurance costs should be added to the customs value.

Determining the customs value contains many pitfalls and have a serious impact on the amount of duties to be paid.

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