Customs Valuation is one of the four building blocks of customs law and practice. Correctly valuing your products is one of the most important obligations of an importer.
Why is Valuation important?
The Customs Value of your product will be the actual figure against which the percentage rate determined by the classification code and origin will be put against. Incorrectly valuing your goods can have numerous negative effects on your business:
You could end up paying too much duty on your goods
You could end up paying too little duty and face a back-duty demand from HMRC
You could face potential penalties
You could end up with a poor compliance record
Also, you could fall foul of the Senior Accounting Officer Provisions and/or be precluded from seeking Authorised Economic Operator Status.
How do you correctly value your goods?
There are six different valuation methods that you can employ, they are:
Method One: The transaction value method
Method Two: Valuation of identical goods
Method Three: Customs Value of similar goods
Method Four: The selling price of the goods in the EC
Method Five: Cost of the production of the goods
Method Six: The fall-back rule
Additions and Deductions
The customs code sets out a number of factors that must be added to or may be deducted from the customs value of imported goods. For example, buying commissions can be deducted but sales commissions must be added.
How can ITS help?
International Trade Solutions offers a number of services in the sphere of Customs Valuation. Our services range from:
Valuation Reviews
Valuation Training
Project Management for quick, robust and cost effective implementation
"ITSs broad knowledge of Customs has proved invaluable"
D. Widdowson, Director of Financial Accounting Croda Chemicals Europe Ltd
"I have worked with Rob on complicated HMRC issues. Aswell as direct assistance, Rob has provided excellenttraining for operational staff. I recommend ITS."
G. Mitchell, Senior Operations Manager EPSON
"ITS have highlighted significant cost savingopportunities."
CW Winter, Financial Controller Special Metals Wiggin Ltd.
"Rob explains clearly, and gets on with people. He isvery constructive and pragmatic. His loyalty to thereds is admirable, if misguided. One of my favouriteScousers!"
Nick Mallett, Partner DHM Stallard
"Rob has provided customs advice on many occasions,always demonstrating deep knowledge of his subject tohelp the business mitigate its duty liabilities."
Stuart Reid, Financial Director Komatsu UK
"ITSs experience and knowledge has ensured projectswere completed with a favorable result."
K R Maddison, Financial Controller Bard Limited
"ITS helped us to reach a successful conclusion when HMCustoms tried to reject our proposed changes by usingtechnicalities."
D. Suddens, Finance Manager Blanc Aero Industries UK Ltd
