The Customs (Import Duty) (EU Exit) Regulations 2018

CHAPTER 2 U.K. Use of Methods of valuation

Modifications etc. (not altering text)

C1 Pt. 12 applied (with modifications) (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 32; S.I. 2020/1643, reg. 2, Sch.

Use of Methods of valuation U.K.

108.—(1) To determine the value of chargeable goods presented to Customs on import M1 which value is to be included in the Customs declaration, follow steps 1 and 2.

(2) Step 1: apply in the following sequence—

(a) Method 1 valuation;

(b) Method 2 valuation; and

(c) Method 3 valuation,

until a Method is found by which the full value of the goods can be readily determined and if none is found, proceed to step 2.

(3) Step 2: apply in the following sequence—

(a) Method 4 valuation then Method 5 valuation, or in reverse order as the person who makes the Customs declaration elects; and

(b) Method 6 valuation,

until the full value of the goods can be readily determined.

(4) But steps 1 and 2 are subject to regulation 109.

(5) A transaction value M2 must be adjusted as necessary to include and exclude as elements of the value such of the specified matters which are not already taken into account as elements of the value.

(6) Where—

(a) a Method is being applied which uses a transaction value;

(b) the value of a specified matter cannot be readily determined;

(c) regulation 109 does not apply; and

(d) HMRC consider that the value would be a significant element of the value of the goods,

that Method is not to be used in the valuation of the goods.

(7) The specified matters to be included as elements of a transaction value are—

(a) the value of each item set out in regulations 111 to 113 but taking into account any depreciation for an item which is a re-used item;

(b) where applicable, any adjusted amount described in regulation 114; and

(c) any amount which is payable in respect of the goods or their importation at a time other than the time when the goods are sold for export to the United Kingdom.

(8) The specified matters to be excluded as elements from a transaction value are the value of each item set out in regulations in chapter 4.

(9) HMRC may presume that where the buyer and seller of chargeable goods are related persons, in the application of Method 1 valuation, the transaction value of the goods is not the full value unless HMRC are satisfied to the contrary.

Commencement Information

I1 Reg. 108 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M1 See section 34 of the Act on the presentation of goods to Customs on import.

M2 See section 16(3) of the Act for the definition of “transaction value”.

Values undetermined when Customs declaration would otherwise be accepted U.K.

109.—(1) This regulation applies where, in the application of Method 1 valuation, a transaction value cannot be determined by the time the Customs declaration in respect of the goods would, if the value were determined, be accepted.

(2) A Customs declaration in respect of the goods may be made in which the value of the goods is in whole or part still to be determined, if conditions 1 to 3 are satisfied.

(3) Condition 1: the declarant must—

(a) be authorised by HMRC for the purposes of this regulation; and

(b) provide a draft of the intended contents of the declaration to HMRC which—

(i) identifies those parts of the value which cannot be determined and why;

(ii) sets out the basis on which the value can later be determined; and

(iii) states the date by which the valuation will be provided to HMRC.

(4) Condition 2: HMRC must notify the declarant—

(a) that it is satisfied that a declaration may be so made; and

(b) of the date by which the declaration must be made.

(5) Condition 3: the Customs declaration is made accordingly.

Commencement Information

I2 Reg. 109 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Provision of evidence U.K.

110.  HMRC may publish a notice specifying the type of evidence to be provided to an HMRC officer which supports—

(a) the use of one Method instead of another; or

(b) the determination of a valuation.

Commencement Information

I3 Reg. 110 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.