Workshop on Customs

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Workshop on Customs Customs Valuation
Int. Market 11333
Ankara, February 23th 2005
Fernando Carmo CONFIAD Paneuropean Network -
President CDO President (Portuguese Customs
Brokers Association) IFCBA-International
Federation Customs Brokers Associations
Executive Director
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION means
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
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION is
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
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION Agreement
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.
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION Agreement
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.
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
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
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
TRANSACTIONAL VALUE METHOD The notion should
having into account - the Sale - the actually
paid or payable price - the elements to add -
the elements to deduct
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
TRANSACTIONAL VALUE METHOD The SALE
- Place and moment - For
export to the E U - Successive
Sales - Acceptance conditions of
Transaction Value on Sale
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
TRANSACTIONAL VALUE METHOD 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).
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
TRANSACTIONAL VALUE METHOD The effectively paid
or payable PRICE or to pay for the imported goods
can be made direct or indirectly. Special
situations to be considered
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
TRANSACTIONAL VALUE METHOD Adjustments to the
Customs Value - Elements to add -
Elements to deduct
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
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 administrations
initiative, occurs when the importer cannot
present, or resigns the presentation of further
justifying documents.
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
OTHER METHODS FOR DETERMINATION (ART. 30
CCC) 1st Method COMPARATIVE This method is
subdivided in 2 sub methods - Transactional
value of the IDENTICAL goods - Transactional
value of the SIMILAR goods
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
OTHER METHODS FOR DETERMINATION (ART. 30
CCC) 1st Method COMPARATIVE Goods produced in
the same country are considered IDENTICAL, which
are the same in all aspects, including the
physical characteristics, quality and reputation.
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
OTHER METHODS FOR DETERMINATION (ART. 30
CCC) 1st Method COMPARATIVE 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.
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
OTHER METHODS FOR DETERMINATION (ART. 30
CCC) 1st Method COMPARATIVE 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.
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
OTHER METHODS FOR DETERMINATION (ART. 30
CCC) 1st Method COMPARATIVE 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.
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
OTHER METHODS FOR DETERMINATION (ART. 30
CCC) 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
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
OTHER METHODS FOR DETERMINATION (ART. 30
CCC) 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
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
OTHER METHODS FOR DETERMINATION (ART. 30
CCC) 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.
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
OTHER METHODS FOR DETERMINATION (ART. 30
CCC) 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
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
OTHER METHODS FOR DETERMINATION (ART. 30
CCC) 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.
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
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.!
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION

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.
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION

EXPORTATION Adjustments to the invoiced value -
Transport Costs -Maritime -Airfreight -Road
, Rail and River Transports
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION
ECONOMIC
ARRANGEMENTS Each one of economic arrangements
has its specificities which regulate the customs
value declaration.
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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION

• 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.

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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION

• 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 trade
• In 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.

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EU Legislation Articles 28 to 36 of the Community
Customs Code
CUSTOMS VALUATION

• These are the main notes on Customs Value with a
  vast and complex scope.
• Thank you very much for
  your attention