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

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.

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. 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”.