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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 (Articles 160 and 161 of the CCIP refer).