Câmara dos Despachantes Oficiais CONFIAD Paneuropean Network Workshop on Customs Customs Valuation Fernando Carmo CONFIAD Paneuropean Network - President

Câmara dos Despachantes Oficiais

CONFIADPaneuropean Network

Workshop on Customs

Customs Valuation

Fernando CarmoCONFIAD Paneuropean Network - President

CDO President (Portuguese Customs Brokers Association)

IFCBA-International Federation Customs Brokers Associations – Executive Director

Int. Market 11333Ankara, February 23th 2005



CUSTOMS VALUATION means:

EU Legislation

Articles 28 to 36 of the Community Customs Code

The value of the goods established for the application of the European Community Customs Tariff, and also non tariff measures, established by specific community rules, within the scope of trade

exchanges.

Ex. Import quotas within the Common Trade Policy, based on goods’ customs value



CUSTOMS VALUATION is:

EU Legislation


Also essential for determination of the amount of other taxes – ex. VAT

The value of the goods is important for statistic purposes on external trade



CUSTOMS VALUATION Agreement:

EU Legislation


The basis in the E U Customs Code is the WTO Valuation Agreement formally known as the Agreement on Implementation of article VII of the General Agreement on Tariffs and Trade 1994 (GATT), replaced by the GATT Valuation Code as a result of the Uruguay Round of multilateral trade negotiations, which created

the World Trade Organization WTO in 1994.



CUSTOMS VALUATION Agreement:

EU Legislation


The GATT Valuation Code was originally created in 1979 during the Tokyo Round of multilateral trade negotiations with a view to ensuring that the effect of tariff concessions would not be derogated by non tariff barriers, one of them being arbitrary Customs Valuation which was prevalent at this time.



CUSTOMS VALUATION

EU Legislation


TRANSACTIONAL VALUE METHOD

The customs value is, in principle, the price actually paid or payable for the goods when sold to be exported within the territory of the EU, after an adjustment made in accordance with articles 32 and 33 of

the CCC



CUSTOMS VALUATION

EU Legislation



The notion should having into account:

- the Sale

- the actually paid or payable price

- the elements to add

- the elements to deduct



CUSTOMS VALUATION

EU Legislation



The SALE:

- Place and moment

- For export to the E U

- Successive Sales

- Acceptance conditions of Transaction Value on Sale



CUSTOMS VALUATION

EU Legislation



The effectively paid or payable PRICE is:

- Financial counterpart of the goods;

- Corresponds to the total payment made by the buyer to the seller, or in his benefit, concerning imported goods, and includes all payments made or to be made resulting from the sale of imported goods, by the buyer to the seller or by the buyer to a third person to comply an obligation of the seller (nr 3, art. 29).



CUSTOMS VALUATION

EU Legislation



The effectively paid or payable PRICE or to pay for the imported goods can be made direct or indirectly.

Special situations to be considered



CUSTOMS VALUATION

EU Legislation



Adjustments to the Customs Value:

- Elements to add

- Elements to deduct



CUSTOMS VALUATION

EU Legislation


OTHER METHODS FOR DETERMINATION (ART. 30 CCC):

- ONLY be used in one of the following situations:

- Absence of transaction value

- Rejection of the transaction value

This rejection, only by customs administration’s initiative, occurs when the importer cannot present, or resigns the presentation of further justifying documents.



CUSTOMS VALUATION

EU Legislation



1st Method: COMPARATIVE

This method is subdivided in 2 sub methods:

- Transactional value of the IDENTICAL goods

- Transactional value of the SIMILAR goods



CUSTOMS VALUATION

EU Legislation




Goods produced in the same country are considered IDENTICAL, which are the same in all aspects, including the physical characteristics, quality and reputation.



CUSTOMS VALUATION

EU Legislation




Goods produced in the same country are considered SIMILAR which, without being equal under all aspects, present similar characteristics, enabling them to perform the same functions and to be commercially interchangeable.



CUSTOMS VALUATION

EU Legislation




Transactional Value of Identical goods is the value of the goods defined as identical, sold for export to the customs territory of the Community, at the same time or at a subsequent one.



CUSTOMS VALUATION

EU Legislation




Transactional Value of Similar goods is the value of the goods defined as similar, sold for export to the customs territory of the Community, at the same time or at a subsequent one.



CUSTOMS VALUATION

EU Legislation



2nd Method: DEDUCTIVE

Consists in determining the customs value based on the unit price corresponding to the sale price in the Community:

- of imported goods

- or, in its absence, of imported identical or similar goods

- or, in its absence, of sold goods after assembling and manufacturing operations



CUSTOMS VALUATION

EU Legislation



2nd Method: DEDUTIVE

The calculation base of the unitary price must be used by the indicated order. Elements to deduct:

- Commissions paid or agreed to be paid

- Common expenses of transport and insurance

- Import duties and other impositions to be paid to the Community



CUSTOMS VALUATION

EU Legislation



3rd Method: COMPUTED VALUE

Consists in determining the customs value from the elements of the price – the production costs, presented by the manufacturer of the goods.

This method is only used when the producer provides the necessary data. There should be an agreement of the Government of the production country.



CUSTOMS VALUATION

EU Legislation



3rd Method: COMPUTED VALUE

Elements to consider:

- Costs or value of the materials used in the manufacturing of imported goods

- General profits and expenses

- Insurance, transport, loading and maintenance expenses to the place of introduction in the customs territory of the Community



CUSTOMS VALUATION

EU Legislation



4rd Method: FALL BACK

When no one of the previously described methods can be applied, customs value will be determined according to this last method.

In these cases customs value should be determined on basis of the available data in the Community, by compatible means to the principles and the dispositions of article VII of the GATT Agreement and based in articles 28 to 31 CCC.



CUSTOMS VALUATION

EU Legislation


DECLARATION OF VALUE

When we have to determine the customs value according to the dispositions of articles 28 to 36 of the CCC, it will have to be presented a declaration of the elements concerning customs value, which will be attached to the customs declaration issued for the imported good.

This declaration is presented in form DV.!



CUSTOMS VALUATION

EU Legislation


EXPORTATION

Customs Value of export is the adjusted value FOB concerning transport costs until the exit border.

The value of exported goods should correspond to the total paid price by the foreign buyer as a counterpart of the goods supply.



CUSTOMS VALUATION

EU Legislation


EXPORTATION

Adjustments to the invoiced value

- Transport Costs:

-Maritime

-Airfreight

-Road, Rail and River Transports



CUSTOMS VALUATION

EU Legislation


ECONOMIC ARRANGEMENTS

Each one of economic arrangements has its specificities which regulate the customs value declaration.



CUSTOMS VALUATION

EU Legislation


FINAL NOTE:The implementation of the WTO Valuation Agreement and thus the application of the current E U Customs Code, requires members to conform to the provisions of the agreement in their valuation legislation and practice given de need to both facilitate trade and ensure compliance some customs administrations implementing the agreement need to re-engineer the way they process imported goods.With this regard, customs reform and modernisation may be necessary.



CUSTOMS VALUATION

EU Legislation


Indeed, successful implementation of the agreement can be achieved provided that: - the right legal framework is developed - modern customs procedures are established which include risk management and post-entry audit techniques - appropriate training is provided to staff and to tradeIn some countries, this is implemented, in others partly and in some countries it is still in an initial stage even in the E U and its future candidate members states.



CUSTOMS VALUATION

EU Legislation


These are the main notes on Customs Value with a vast and complex scope.

Thank you very much for your attention

Documents

Câmara dos Despachantes Oficiais CONFIAD Paneuropean Network Workshop on Customs Customs Valuation Fernando Carmo CONFIAD Paneuropean Network - President