New Union Customs Code – lack of clarity transaction value previous message

New Union Customs Code – lack of clarity transaction value

The currently proposed text of the new Union Customs code (to be effective as from May 2016) creates significant uncertainty which transaction value needs to be used for custom purposes.

In the current system it is possible to link the transaction value to any transaction that was destined for the EU, but which took place before the last sale based upon which the goods entered the EU.

There no longer will be a possibility to choose a transaction value in a chain of sales, only one sale qualifies:

  • Either the sale that occurs immediately before the goods enter the customs territory of the EU, or, in case such sale is not in place,
  • A sale that takes place while the goods are under customs suspension after entering the customs territory of the EU (i.e. before being cleared for free circulation in the EU)

Way forward

Importers that are applying an earlier or first sale should review to which extend they will have to adjust their valuation strategy for custom purposes.

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