60 Second Guide to Using Transfer Price for Customs Valuation Purposes 

 

a)     The customs valuation rules set out six methods to determine an acceptable customs value and these rules must be applied in cascading order 

 

b)     Over 90% of all customs values are determined using Method One, which states "the customs value of imported goods shall be the transaction value, that is, the price paid or payable for the goods when sold for export to the customs territory of the Community...[1]"

 

c)     This transaction value can be used for related party sales provided the relationship does not affect the price

 

d)     The importer has two alternative ways of demonstrating that the relationship does not affect the price, namely

1. Showing the transaction value closely approximates one of the test values set out in the customs valuation regulations, or
2. By a review of the circumstances surrounding the sale

e)     Importers rarely have access to acceptable test transactions set out in the regulations and usually have to rely on the circumstances of sale test 

[1] Article 29(1) Council Regulation 2913/92

 

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