Recent developments customs valuation and transfer pricing

Customs valuation plays a critical role in assessing the compliance and duty requirement when importing products in a jurisdiction. For multinational entities (MNE’s) it is crucial that the transfer pricing regulations and implementations are aligned with the teams responsible for customs and trade within a company. Within this field, there are three developments that we briefly outline for you.

1.     Updating Delegated Regulation (EU) 2015/2446

First, for customs purposes the Delegated Regulation (EU) 2015/2446 has been updated for binding information in the field of customs valuation. In case of doubt, it will become possible to apply for a Binding Valuation Information, like to current BTI. Such BVI decision will increase the legal certainty, compliance and uniformity in customs valuation to the benefit of economic operators and traders.

What will the binding customs valuation information look like?

A new article 18a is introduced into the Delegated Regulation, to identify customs valuation as a case for decisions relating to binding information, topics and provisions similar to the ones applicable to BTI (tariff classification) and BOI (origin) decisions. In short, the BVI will cease after three years and cannot be revoked retroactively.

2.     Renewed Customs Valuation Compendium

Second, on April 11 2024 the renewed Compendium of Customs Valuation has been published. This is a renewed comprehensive guidance on customs valuation. It covers different aspects relating to determining the value of imported goods e.g. royalties and R&D.

3.     Guidelines for simplified valuation

Last, the European Commission published welcome guidance on the rules of Valuation simplification under article 73 of the Union customs code (UCC). The set of guidance outlines provisions related to customs valuation and the guidance aims to streamline the processes for economic operators, and enhancing efficiency and reducing administrative burdens.

The transfer pricing team from Mazars works closely together with the Indirect Tax and customs team.  This enables us to properly advise you on customs valuation and import duty regulations.