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HMRC internal manual

Guidance on the Audit of Customs Values

Determination of the customs value: the methods of valuation

There are six ways or ‘methods’ that must be used to determine the customs value and special procedures for imports of fresh fruit and vegetables.

Method 1 (the transaction value)

The customs value is based on the price actually paid or payable for the goods when sold for export to the EC with various adjustments as briefly detailed in GACV02150. Since this method is the one most commonly applicable, you should concentrate on considering whether an acceptable transaction value exists in relation to any particular importer’s terms of trading and trading arrangements, before examining the other methods.

Method 2 (the transaction value of identical goods)

The customs value is based on the transaction value of identical goods sold for export to the EC and exported at or about the same time as the goods being valued and has previously been determined under Method

Method 3 (the transaction value of similar goods)

The customs value is based on the transaction value of similar goods sold for export to the EC and exported at or about the same time as the goods being valued and has previously been determined under Method

Method 4 (the deductive method)

The customs value is based on the unit selling price in the greatest aggregate quantity at which the imported goods or identical or similar imported goods are sold to unrelated customers in the EC. Administratively, this method is sub-divided into two:

  • Method 4(a) - The unit price is based on sales in the greatest aggregate quantity of the imported goods or identical or similar goods, sold in the same condition as imported, at or about the time of the importation of the goods being valued.
  • Method 4(b) - The unit price is based on the actual sales of the imported goods, sold in the same condition as imported at the earliest date after importation of the goods being valued but within 90 days of such importat

Method 5 (computed value)

The customs value is based on the production cost of the goods plus profit and general expenses.

Method 6 (the fall back method)

The customs value is based on the flexible application of Methods 1 to 5. An example of goods you may encounter under this method are ‘no charge’ or ‘free of charge’ ite

Simplified Procedure Values (SPVs) (for fresh fruit and vegetables)

The customs value is derived from prices realised on sales in specified marketing centres. A variety of deductions are made from these prices to arrive at an average sterling value per 100 kg net for each product covered by the scheme.