Customs value (customs valuation)
As already mentioned in the subchapter Customs Tariff and Nomenclature Classification of Goods, we recognize the following duties:
- ad valorem duties – customs duties are expressed as a percentage of the customs value,
- specific duties– basis for calculating the duty is a quantity other than the customs value, such as weight, volume, area or alcoholic strength, and the rate is expressed as a fixed amount per unit of that quantity,
- combined duties– elements of both (ad valorem duty and a specific duty) are used for calculating the duty.
Ad valorem duties are the most frequently used duties, and therefore the customs value of the goods is the most used basis for calculating the duty. For this reason, the issue of customs value has a special place in customs legislation among the factors on the basis of which customs duties are applied. Moreover, unlike the basis for specific duties where no special regulation is required, in case of customs value, this special regulation is clearly required. In relation to this type, a number of questions arises. These questions are covered by the legal regulation on customs value.
Although the customs legislation does not contain a definition of the term customs value, it can be generally stated that customs value is the value of the goods, namely transaction value or substitute value, which is used as the basis for the assessment of ad valorem duties on import or export of goods.
The content of the term of customs value is clarified and specified in the legislation itself contained in Article VII of the General Agreement on Tariffs and Trade (GATT), in the Convention on Customs Valuation of the World Customs Organization (WCO) and in the European customs legislation which derives from the above-mentioned international regulations.
We distinguish six methods of determining customs value, which are used in the specified order. If the customs value of the goods is determined by one method, all other methods following it are excluded. Only in case of methods no. 4 and 5, the order of the methods may be changed at the declarant´s request.
