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HMRC internal manual

Guidance on the Audit of Customs Values

Export licences: textile products (quota charges): manioc from Thailand

There is a bilateral agreement between the EU and the government of Thailand for the exportation by Thailand and the importation by the EU of Thai manioc. This agreement is based on a limitation commitment by Thailand, and there is a special low-duty rate for a fixed amount of manioc exported to the EU. Control is based on a system of double-control including the use of export and import licences.

Commercial practice shows that trade takes place in the acquisition of export quotas in Thailand. The relevant Thai regulations indicate that export quota can only be assigned from one exporter to another exporter if the manioc covered by the export quota is also assigned to the new importer.

The allotment of export quotas of manioc takes place on the basis of the request of the exporter. Before the allotment takes place, the exporter has to inform the authorities of the quantity of his stock. The allotment granted to him is based on the stock, the allotted quota being in proportion to his stock. By being granted this quota, the exporter has the obligation to export this quantity in the time-period given. An assignment of the export quota is only granted (and is only possible) if the stock is also assigned to the new exporter, who is responsible for the exportation of the assigned quantity. The cost to acquire the export quota can be either presented in a separate invoice, or separately shown on the invoice for the manioc.

Practical application

It is evident that trade in export quotas only does not take place. The transactions which occur cover both the export quota and the manioc in respect of which this quota is assigned. Payments made in the context of these transactions are for both the export quota and the associated manioc. These payments are therefore to be included in the customs value as part of the price paid or payable (Article 70.2 of the UCC) (CVS Conclusion 20 also refers).