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HMRC internal manual

Customs Authorisation and Approval

HM Revenue & Customs
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Overview of customs regimes and procedures requiring prior authorisation or approval: Valuation Simplifications

An authorisation is required under Article 73 of the Code to use a valuation simplification when amounts are not quantifiable, on the date when the customs declaration is accepted, in respect of the:

·        Elements to be included in the customs value (Article 71); and

·        Elements not to be included in the customs value (Article 72).

The Code has introduced three new high level authorisation criteria for valuation simplifications:

·        Compliance history, including other taxation areas

·        Effective internal controls to manage customs processes

·        Appropriate internal management controls

The Code also prohibits the use of this valuation simplification with the Simplified Declaration Procedure (article 71, DA).

This authorisation includes items previously agreed under the annual adjustment arrangements, for example annual insurance calculations or tooling costs.

Economic operators importing goods subject to royalties may need to apply for a valuation simplification authorisation where the royalty payment cannot be accurately determined at the point of importation.