The customs value is one of the key elements for the application of customs measures. It is also useful to take precautions in certain customs regimes, it will also determine the possible application of control measures of external trade.

• Customs value on import
• Customs value on export

Customs value on import

The unique framework of the European Union makes a clear distinction between the taxable value by virtue of customs duties and the taxable value due to VAT. Indeed, when goods enter the European Union, the importer must pay customs duties. The merchandise will then be said to be in "free circulation", that is, it will be free to circulate on European territory. But to sell its products, the firm must still pay the VAT in the country of sale. The merchandise is then said to be " in unrestricted circulation".

1. The taxable value in the name of customs duties.

The definition of the value in customs relies on the concept of transactional value . This measure doesn't necessarily correspond to the price of sale that appears on the contract!

The transactional value corresponds to the commercial value of the merchandise calculated at the point of introduction in the EU.

• If the purchase was deemed to be Ex-Works (EXW): the price appearing on the contract must be added to the transport and insurance costs covering the journey until the Union's border.

• If delivery is done at destination: one has to subtract all the costs withstood from the moment of entrance in the EU from the contracted price.

• The "value of identical goods" method: the value of a product identical in all respects is taken as reference;

• The method of similar merchandise cleared at the same commercial level: the value of the product is equivalent to that of a product with the same characteristics;

• The method of calculated value: the value of the product is calculated on the basis of an estimate of its constituent parts, the workforce used, transport costs, etc.

The VAT taxable amount is always bigger than the customs value and includes all the cost elements (including customs duties) up to the first point of delivery in the importing country (the place determined by the transport document).

To the customs value one should add the costs to bring the merchandise to destination.

For the majority of commercial transactions, the calculation is relatively simple. Feel free to consult our technical file to estimate the customs value of your product.

Customs value on export

On export, there is no community definition of the customs value. It is still necessary to declare the value of the goods (increased by the price of internal transport) at the point of exit of the customs territory for external commerce statistics.