If you are exporting or importing goods, you need to know one fundamental concept: the customs value. The customs value, the tariff species and the origin of the goods are the three pillars of customs and allow calculating the import duties.

  • The customs nomenclature: code assigned to all goods
  • The origin : Precision on the country of manufacture of the goods or the country of obtaining of the products. Imperative in the customs declaration.
  • The customs value: determined for the purpose of collecting customs duties.

Let’s talk about the customs value and essentially the bases:

What is the customs value?

The customs value is the value used to calculate the duties and taxes related to the transaction during an import-export operation. Its estimation is based on precise and harmonized rules at the European Union level.

There are several methods for determining the customs value defined in articles 70 to 74 of the CDU, specified by articles 128 to 144 of the Implementing Regulation (IR). However, there are different methods of determination depending on the type of operation: import or export.

What is the purpose of the customs value?

The customs value allows the importer to determine the duties and taxes applied to his product. This includes customs duties, VAT or anti-dumping duties for example.

For exports, the customs value determines the basis for certain duties and collects the data necessary to establish foreign trade statistics.

How is it calculated?

The calculation of the customs value is based on the transaction value of the product, i.e., the price actually paid for the goods when they are sold for export from the customs territory of the Union. Sometimes this transaction value may be reduced or increased by certain charges listed in Articles 71 and 72 of the CDU.

Otherwise, it is determined by applying the secondary methods defined in Article 74 of the CDU, in order to re-establish the real value of the goods.

Examples of costs to be added:

  • Transportation and insurance costs,
  • Royalty and license fees,
    Commissions on sale,

Examples of costs to deduct :

  • Transport costs of post carriage, hence the importance of the incoterms
  • Costs related to the right to reproduce in the EU the i

The VAT is calculated on the value of the imported products and on the post-carriage costs and other possible costs, and is paid to the DGFIP under the conditions provided for by the General Tax Code, in particular through the filing of the CA3 declaration.

Please note that the VAT also takes into account the main transport and the insurance.

Do not forget the purchase incoterm which is important in the calculation of the customs value.