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

Method 5 valuation U.K.

125.—(1) “ Method 5 valuation” means the valuation of chargeable goods presented to Customs on import which is determined by the valuation method in paragraph (2).

(2) The valuation method is—

(a) identify—

(i) the cost of producing the goods and the cost of the container and packaging of the goods;

(ii) the costs of transport and insurance of the goods, up to the time the goods are imported into the United Kingdom;

(iii) loading and handling charges of the goods, up to the time the goods are imported into the United Kingdom;

(iv) the amount of expenses usually incurred in enabling comparable goods to be sold in the place of export of the goods; and

(v) the amount of profit usually arising on a sale of comparable goods in the place of export of the goods;

(b) total the costs, charges and amounts in sub-paragraph (a); and

(c) apply that total as the value of the chargeable goods which applies immediately before they are released for free-circulation.

(3) The cost of producing the goods must include the cost of each item listed in paragraph (4) which is provided outside of the United Kingdom in relation to the production or development of the goods, if the cost of the item is charged to the buyer.

(4) The items referred to are—

(a) artwork;

(b) designs;

(c) development services;

(d) engineering work or services; and

(e) plans or drawings.

(5) Paragraph (3) applies to an item even if it is not intended to be used by the buyer in the processing, use or disposal of the goods.

(6) Where goods are transported by air, the cost of the air transport is the percentage of that cost as set out in the document, “Air Transport Costs to be included in the customs value, version 1, dated 27 November 2018 M1 ”.

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.

Commencement Information

I1 Reg. 125 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M1 Available from: https://www.gov.uk/government/collections/customs-vat-and-excise-regulations-leaving-the-eu-with-no-deal. A hard copy is available for inspection free of charge at the offices of HMRC at 100 Parliament Street, London, SW1A 2BQ.