Commentary

252 Valuation of imported goods for Customs purposes, VAT and trade statistics

Part V17 Customs duties

252 Valuation of imported goods for Customs purposes, VAT and trade statistics

252
Valuation of imported goods for Customs purposes, VAT and trade statistics

April 2020

This notice cancels and replaces Notice 252 (April 2016)

1 Introduction

1.1 What this notice is about

There are a number of Methods for establishing the value on which customs duty and import VAT is calculated. The same value is also used for trade statistics. This notice explains what the methods are and when they may be used.

This notice explains our view of the law, and nothing in it overrides the law.

1.2 Who should read this notice

It is mainly for importers and their clearing agents. The notice is written as though you are the importer unless otherwise stated.

1.3 Why you need a value for Customs Duty

We often charge customs duty as a percentage of the value of your goods – we call this “ad valorem duty”. The amount of duty you must pay depends on the customs value of your goods. The rules for arriving at the customs value are based on the World Trade Organisation (WTO) Valuation Agreement (previously known as the “General Agreement on Tariffs and Trade (GATT) Agreement”).

1.4 What law covers customs valuation?

These rules are set out in European Community (EC) Regulations which are listed in Section 26.

All EC legislation is available on the Internet (https://europa.eu/european-union/index_en)

1.5 Import VAT

VAT due at import is treated like a customs duty. The amount of VAT you must pay depends on the value of the goods. The rules for arriving at this value are set out in VATA 1994, s 21.

1.6 What are

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