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

Transaction value: further included items – partial value U.K.

112.—(1) The items referred to in regulation 108(7)(a) as specified matters to be included as elements of a transaction value further include the following, where the buyer of the goods provides them to the seller other than for full valuable consideration—

(a) materials, components or parts of the goods;

(b) materials consumed in the production of the goods;

(c) dies, moulds or tools used in the production of the goods; and

(d) each item listed in paragraph (2) which is provided outside of the United Kingdom in relation to the production or development of the goods.

(2) The items referred to in paragraph (1)(d) are—

(a) artwork;

(b) designs;

(c) development services;

(d) engineering work or services; and

(e) plans or drawings.

(3) Paragraph (1)(d) 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.

(4) Subject to paragraphs (5) and (6), the value of an item in paragraph (1) is—

(a) if it can be readily determined—

(i) where the buyer or a related person of the buyer did not produce the item, the price paid by the buyer for the item; or

(ii) where the buyer or a related person of the buyer produced the item, the cost to the buyer or related person of producing the item; or

(b) otherwise, a value determined in accordance with the principles adopted by the WTO M1 in the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 M2 .

(5) In respect of an item to which paragraph (1)(c) or (d) applies, where the item is used or provided in relation to other goods as well as the goods to be valued, the value is to be apportioned proportionately between the other goods and the goods to be valued.

(6) The total value of the items to which paragraph (1) applies is to be reduced by the amount of the value of the consideration provided by the seller.

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. 112 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M1 Defined in section 37(1) of the Act as “the World Trade Organisation”.

M2 Available from: http://www.wcoomd.org/-/media/wco/public/global/pdf/topics/valuation/instruments-and-tools/gatt/arti7_gen_agreemt.pdf?db=web. A hard copy is available for inspection free of charge at the offices of HMRC at 100 Parliament Street, London, SW1A 2BQ.