It is important for your business to understand the methods of the custom value of your imported goods. All international trade transactions must do a valuation to form the basis of duties and taxes applied.
The transaction value (method 1) is the most common of the 6 methods to value imported goods. when a sale takes place, this value must be used. A sale is considered as a transaction if a transfer of money takes place on an "arm’s length basis".
When doing this you must take several things into account, included in this would be:
- the cost of transport, insurance and related charges up to the place of importation
- Packing and container cost and charges
- assists (tools, dies and moulds used in production or engineering, artwork and design that has taken place outside the EU)
- royalties and license fees
- subsequent proceeds
It is very important you get the right valuation of your imported goods to avoid penalties & fines. for a more detailed explanation, please read through the revenues customs manual on valuation
