Most duties in the EU are a percentage of the value of the goods. The base that percentage is applied to is called the customs value, and its calculation follows precise rules in Articles 69 to 74 of the Union Customs Code.

In brief

  • The basis is the transaction value: the price actually paid or payable for the goods when sold for export to the EU (Article 70).
  • Certain costs not already in the price are added — above all transport and insurance up to the place of entry into the EU (Article 71).
  • Costs arising only after entry into the EU are not included in the customs value (Article 72).
  • Where the transaction value cannot be used, secondary methods follow in a fixed order (Article 74).

What is added to the price

  • commissions and brokerage, except buying commissions,
  • the cost of containers and packing,
  • the value of materials, tools, moulds or designs supplied by the buyer free of charge or at reduced cost and used in production,
  • royalties and licence fees the buyer must pay as a condition of sale,
  • the part of the proceeds of any resale that accrues to the seller,
  • transport, insurance, loading and handling up to the place where the goods enter the customs territory of the EU.

What is not part of the customs value

  • transport after entry into the customs territory of the EU,
  • assembly, maintenance or technical assistance after the goods have entered,
  • interest under a financing arrangement for the purchase,
  • buying commissions,
  • import duties and other charges payable in the EU by reason of the import or sale of the goods.

Secondary methods

Where the transaction value cannot be used, the order is:

  • the transaction value of identical goods,
  • the transaction value of similar goods,
  • a value derived from the price at which the goods are sold in the EU,
  • a computed value based on production costs,
  • a value determined from data available in the EU by reasonable means.

The order of the third and fourth methods may be reversed at the declarant's request.

What is often confused

  • The delivery term changes the calculation. Under EXW or FCA the price does not include transport to the EU border, and it is added. Under DAP or DDP the price also includes transport after entry into the EU, which is not part of the customs value.
  • The customs value is also the starting point for import VAT. Its taxable amount is the customs value plus the duty and further costs under VAT law.
  • Discounts are taken into account where the sales contract provides for them at the time the customs declaration is accepted.