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HMRC internal manual

Guidance on the Audit of Customs Values

Royalties and licence fees: condition of sale

This requirement means that royalties and licence fees are to be included in the customs value if their payment by the buyer to the seller or to a third party is required by the seller as a condition of the sale of the imported goods.

Royalties or licence fees which the buyer pays directly or indirectly to the seller or to a licensor who is related to the seller can normally be regarded as being paid as a condition of sale even when the fee is not payable until after the goods are resold, used or otherwise disposed of after importation (Article 136.4 UCC IA refers).