Value Flashcards
What is an excise tax ?
a tax on quantity and not on value (droit d’accise). For example on number of liter of wine imported and not on the value of the wine
According to what the value of a good hae to be established ?
the provisions of the UCC (even in case of exemption of customs duties or use of another procedure than release for home use)
The customs value of a good is used to : (4)
- The application of customs duties which are generally expressed as a percentage of the value of goods being declaredfor importation (ad valorem)
- tax basis for VAT, dock dues, ..
- import-export statistics
- the calculation of a guarantee in case of use of a suspensive procedure
It’s one the three “element of taxation” that provides the basis for assessment of the customs debt
What are the legal Framework of the value of a good ?
the WTO customs valuation agreement (art VII)
In th EU : UCC art 69-74 and DA and IA art 127-146
Is the proforma invoice considered as an invoice for a declaration of value ?
No
Differences between invoice and pro forma invoice can lead to dispute.
in absence of an invoice, the importer has to provide other documents that can be considered as equivalent of an invoice to customs
Can an invoice value expressed in a foreign currency ?
Yes, but the customs value must be in nationnal value. Exchange rate are published once a month (art.48 UCC IA)
What’s the transaction value ?
the price actually paid or payable for the goods when sold for export to the customs territory of the Union, adjusted when necessary.
Which operations do not qualify as a sale for export to the EU ?
- Free supply,
- Goods imported on consignement,
- Goods imported by an intermediary which doesn’t buy the goods and sell them after importation
- Goods imported by branches of the same company which are not separate legal entities
- Goods imported Under a hire or leasing contract
- Goods which have been lent and stay the condignor’s property
- Waste or scrap imported in order to be destoyed in the country of importation
- Barter or compensation trade
What are the elements that are to be added to the transaction value ? (art 71 UCC)
Elements that incurred by the buyer but not included in the price (sales commission, costs of container packing,…)
Goods and services supplied by the buyer (material, components, Tools, design work,…)
Royalties and licence fees (Under conditions)
Transport, insurance, handling
What are the conditions to subtracted elements from the transaction value ? (art 72 UCC)
They are included in the price
They are quantifiable,
They are separately shown on the invoice
(all thoses conditions must be fulfilled)
What are the elements that are to be subtracted to the transaction value ? (art 72 UCC)
the cost of transport after their entry into the customs territory union
charges after the entry of th goods into the territory
charges for interest Under a financing arrangement relating to the purchase
charges for the right to reproduce the imported goods in the union
buying commissions
import duties or other charges payable in th union by reason of the import or sale of the goods
For how many years the adjustment authorization is valid ?
3 years
Where and on which paper the adjustment rate is to be filled ?
box 45 of the SAD
Is the person who’s filling the customs declaration doesn’t have all necessary information to declare the customs value, what should he do ?
he may declare a povisionnal value :
- have to lodge a D48 form
+ constitution of a guarantee
In case of regular use of a provisionnal value, Customs authorities may umpon application deliver a provisional value authorization
What are secondary methods of customs valuation as defined by the WTO ? (5)
Transaction value of identical goods Transaction value of similar goods Deductive methode Computed method Fall-back method
