Applying for simplifications in determining the customs value

Source: BUS Rheinland-Pfalz

For goods imported into the customs territory of the European Union (EU) from third countries, a customs value is determined when the customs declaration is made. The customs value reflects the value of the goods upon entry into the customs territory of the Union. It significantly influences how high the import duties are for the imported goods.

In addition to the invoice price of the goods, the customs value may also include or exclude the following components:

additions and/or
deductions and/or
split-off purchase price components

Additions are costs that are not included in the invoice price of the goods but are also paid by the buyer. These include, for example

transportation costs
insurance costs
license fees

Deductions are payments that the buyer makes by paying the invoice price for the goods, but which are not included in the customs value. These include, for example

Transportation costs for the transport of goods after crossing the border into the customs territory of the European Union
Costs for construction, erection and assembly of the goods (e.g. industrial plants) after importation

In some cases, the purchase price of goods is made up of several components. Then, in addition to the costs for the goods, costs for the seller's activities in connection with the delivery of the goods are also due. These activities are called "split-off purchase price components". Examples are

Certification and analysis costs (costs for goods testing to ensure that the imported goods meet contractually stipulated safety standards and quality requirements) or,
Advertising costs (e.g. costs for the creation of advertisements and TV and radio spots)

If additions, deductions and split-off purchase price components cannot be finally determined at the time of the customs declaration, lump sums can be used as an alternative. The lump sums are then included in the customs value instead of the exact amounts or are not included in the customs value. In this case, we speak of simplifications. These simplifications only apply to a customs valuation using the transaction value method. If you wish to make use of this, you must submit an application.

You can apply for authorization in writing to the responsible main customs office.

Draw up an informal letter in which you provide the following information:
- Specify the addition and deduction factors or the split-off purchase price components (e.g. transport costs, license fees, assembly costs, analysis costs) for which you are applying for approval
- Specification of the goods with trade description and CN code to which the simplifications relate
- Details of the suppliers of the goods
Then explain how the requested addition, deduction or split-off purchase price component is calculated and state the assessment basis (e.g. ex-works price) to which it relates.
Attach parts "I to III of the customs authorization questionnaire" to the letter. Exception: Authorized Economic Operators (AEO) do not have to enclose the questionnaire.
Send the signed letter with questionnaire by post to the main customs office in whose district your main accounts for customs purposes are kept or are accessible.
After your documents have been checked, you will receive a notice of approval or rejection from the main customs office.

Please note that if you are applying for a cross-member state authorization, you must submit the application online via the EU Trader Portal. The parts of the questionnaire are not uploaded to the EU Trader Portal. Please send them to the competent main customs office with reference to your application number from the EU Trader Portal.

You can submit an application for simplifications if

you have not committed any serious or repeated infringements of customs or tax regulations or any serious criminal offenses in the course of your business activities.
you use an accounting system that complies with generally accepted accounting principles and that facilitates customs controls based on audits. The accounting system archives the data in such a way that an audit trail is created at the time of data entry.
Have an administrative organization appropriate to the type and size of the business and suitable for managing the movement of goods.
You have internal controls in place to detect illegal or irregular transactions.
the creation of a simplified customs declaration would represent a disproportionate administrative burden for you.
the simplification does not lead to a reduction in the import duties to be levied.

Applying for simplifications in determining the customs value

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