Where warranty payments are included as part of the invoice value of the goods or paid by the buyer to the seller or a third party to satisfy an obligation of the seller, they are considered to be dutiable as, at the time of importation, they are made to the benefit of the seller as a condition of sale.
The warranty costs form part of the price paid or payable under Article 70.2 of the UCC (see also WCO Comm 20.1, EN 6.1 and Case Study 6.1. EN 6.1 explains the distinction between the term ‘warranty’ and the term ‘maintenance’ in Article 72 (b) of the UCC).
There are other provisions covering defective goods repaired under warranty. See Notice 252 Valuation of imported goods for customs purposes, VAT and trade statistics for details.