Union Customs Code: Valuation

There are a number of changes proposed to the valuation rules within the UCC. The main ones are to earlier sales, royalties and license fees.

Earlier sales rules

The earlier sale facility will be withdrawn and replaced by a last sale only rule. There will be a transitional measure by which any binding contracts containing a reference to an earlier sales agreement may be used until 31 December 2017.

For these contracts to be eligible for the earlier sale rule they must:

  • be contractually binding
  • contain reference to the earlier sales agreement
  • had been entered into before the IA coming into force (expected to be 20th day following its publication in the Official Journal of the EU).

Royalties and licence fees

Currently, for a royalty fee to be liable to duty it must:

  • relate to the imported goods
  • be paid as a condition of sale of those imported goods

Under the UCC, royalties and licence fees will generally be paid as a condition of the sale of the goods and should be included in the customs value.