Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Guidance on the Audit of Customs Values

From
HM Revenue & Customs
Updated
, see all updates

Assists: materials supplied by or on behalf of the buyer

Materials are often supplied by the buyer (or from a third party on behalf of the buyer) to the seller/processor either free of charge or at a reduced cost. The full cost of production or acquisition of these materials is to be included in the customs value, whether incorporated in the imported goods or consumed in their production.

Outward freight and insurance are not to be included in the value of the materials supplied by the buyer. The exception to this is when the goods are acquired at a CIF price and the outward freight and insurance is not separately distinguishable. In this case the outward freight and insurance is to be included in the value.

Similarly, when goods are sent to the manufacturer or processor from a third party, the outward freight and insurance are not to be included in the customs value for the imported goods. However, when the charge for the goods from the third party includes freight and insurance to the manufacturer’s or processor’s premises, and these costs are not distinguishable from the value of the goods, no deduction is allowable for outward freight and insurance (CVS Comm 1 refers).