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

CHAPTER 4 Transaction value: specified matters – excluded elements

Transaction value: excluded items

115.—(1) The items referred to in regulation 108(8) as specified matters to be excluded as elements from a transaction value are the following—

(a) import duty in respect of the goods;

(b) buying commission in respect of the goods;

(c) the right to reproduce the goods in the United Kingdom;

(d) transport and insurance of the goods, after the time the goods are imported into the United Kingdom; and

(e) the assembly, construction, erection or maintenance of the goods or the provision of technical assistance in relation to the goods, to the extent such an activity applies after the time the goods are imported into the United Kingdom.

(2) The value of an item in paragraph (1) is—

(a) in respect of sub-paragraph (a), the amount of the import duty;

(b) in respect of sub-paragraphs (b) to (e)—

(i) if it can be readily determined, the amount payable for the item by the buyer of the goods; or

(ii) otherwise, a value determined in accordance with the principles adopted by the WTO in the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994.

Transaction value: further excluded items - royalties

116.—(1) The items referred to in regulation 108(8) as specified matters to be excluded as elements from a transaction value further include a royalty or licence fee agreed to be paid by the buyer to the seller where—

(a) the royalty or licence fee is payable when the buyer sells the goods; and

(b) the agreement to pay the royalty or licence fee is a separate agreement to that entered into between the buyer and seller for the import of the goods into the United Kingdom.

(2) The value of the royalty or licence fee is, if it can be readily determined, the amount agreed to be paid.

Transaction value: further excluded items – finance interest

117.—(1) The items referred to in regulation 108(8) as specified matters to be excluded as elements of a transaction value further include finance interest.

(2) “Finance interest” means the interest charged under a relevant finance agreement which is attributable to the finance used to purchase the goods.

(3) “Relevant finance agreement” means a written finance agreement between the buyer and seller of the goods entered into to enable the buyer to buy the goods and where—

(a) the rate of interest payable under the finance agreement does not exceed that usually payable under similar agreements in the territory where the finance agreement was entered into; and

(b) in cases where the buyer sells the goods within a period of 30 days beginning with the day after the date of their release to free-circulation, they are sold at no less than the value declared in the Customs declaration.

(4) The value of the finance interest is, if it can be readily determined, the amount of the interest.

Transaction value: further excluded items – costs during storage and increase in value

118.—(1) The items referred to in regulation 108(8) as specified matters to be excluded as elements from a transaction value further include in respect of the goods—

(a) costs incurred for storage of the goods whilst they are held in a temporary storage facility or held in storage further to a special Customs procedure(1); and

(b) any increase in value which occurs after the goods are imported into the United Kingdom.

(2) Paragraph (3) applies where—

(a) the goods are declared for a special Customs procedure and are subject to operations described in sub-paragraph (b) of paragraph 11 of Schedule 2 to the Act; and

(b) costs are incurred, or any increase in value occurs, by virtue of those operations (“operations costs or increase in value”).

(3) Operations costs or increase in value only fall within paragraph (1) if they derive from those operations specified in a notice published by HMRC as operations constituting usual forms of handling of goods.

(4) The value is, if it can be readily determined, the amount of the costs or increase in value.

(1)

“Special Customs procedure” is defined in section 3(4) of the Act.