Customs valuation procedure
This document contains a description of VTTI's procedure applied at the terminals for determining the customs value of goods.
Scope and purpose
This Customs Valuation Procedure sets out the principles, scope, and practical steps applied by VTTI for determining the customs value of goods imported into the European Union.
The purpose of this document is to ensure that customs values are established in a consistent, accurate, and compliant manner, in line with the requirements of UCC and related legislation. It aims to provide clear guidance to relevant personnel on how to determine the appropriate valuation method, perform the necessary checks, and document the outcome of the valuation process.
This procedure applies to all imports of goods into the EU where VTTI is involved in the declaration process, regardless whether that declaration is filed under (in)direct customs representation or on behalf of VTTI itself. It covers, in detail:
the selection and application of the appropriate customs valuation method;
the assessment of transaction values and alternative valuation methods where applicable;
the identification of elements to be added to or excluded from the customs value;
the verification steps required to ensure the accuracy and completeness of the declared value; and
the documentation and record-keeping requirements supporting the declared customs value.
This procedure serves as a practical reference for personnel involved in customs declarations and should be followed when determining and reviewing customs values for import into the EU.
Methodology selection
When a product arrives at the terminal and a parcel is registered in Atlas, the value of the product is recorded by CS in line with the market value at the time of registration. The market value is usually provided by the customer, or otherwise obtained by CS from publicly available market data sources, such as Platts Market Data from S&P.
When the customer sends a nomination to bring the product into free circulation, CS registers an import service in ERP. The import service requires a value, which is used in the import declaration.
Where the applicable import duty rate is 0%, the goods qualify for preferential treatment upon import, or where a specific duty applies (i.e., duties are not calculated over the value but over another factor such as weight), the customs value declared serves a purely statistical purpose and has no financial impact. In such cases, VTTI has agreed with the customs authorities to apply the “reasonable means” method as an alternative method of customs valuation, in accordance with Article 74(3) of the UCC. More specifically, the market value that was registered at the time the parcel was created is used as the customs value in the import declaration.
If the import duty rate exceeds 0%, no preferential treatment applies and customs duties due are calculated on an ad valorem basis, the regular customs valuation framework of the UCC will be applied to determine the customs value.
This approach can be schematically displayed as follows:
Transaction value method
Applicability of the transaction value method
The transaction value method can only be applied if the product is sold for export to the EU. This means that ownership of the product is transferred from a buyer to a seller, and that the product is transferred to the EU in the context of that sales transaction.
If the product is sold for export, and it has been determined that the customs value must be determined in line with the regular customs valuation framework of the EU (see decision tree in the previous section), the customer must always provide VTTI with the commercial invoice relating to the relevant transaction.
The transaction value method cannot be used in the following situations (article 70(3) UCC):
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Restrictions on use or resale
If the buyer is restricted in how they can use or resell the goods, except for standard restrictions (e.g. legal requirements, geographical resale limits, or restrictions that do not affect the value of the goods).
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Price depends on unclear conditions
If the agreed price is influenced by conditions or arrangements for which no clear value can be determined (for example: bundled deals, unknown future compensations, or non-quantifiable obligations).
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Proceeds flow back to the seller
If the seller receives (directly or indirectly) part of the proceeds from the buyer’s resale or use of the goods, and this cannot be properly adjusted in the customs value.
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Relationship influences the price
If the buyer and seller are related and there are indications that this relationship has affected the agreed price.
VTTI has limited visibility into whether these requirements are met and therefore relies on the customer’s judgment in this regard. VTTI does, however, perform a reasonableness check to the extent possible, based on the commercial invoice and other available information. The check consists of a general check whether the invoice gives any indication that any of the above items may be applicable. This check includes, for example, the following elements:
Whether the invoice contains a clear price;
Whether there are any indications that the price may be adjusted at a later stage;
Whether the buyer and the seller are related. Buyer and seller are "related" if they belong to the same group. Article 127 of the UCC Implementing Act provides further guidance on when parties are considered related.
If these checks raise any doubt regarding the acceptability of the invoice price, CS will contact the customer to obtain clarification.
In addition, CS may compare the invoice price with the current market price. If the deviation exceeds 5%, CS will contact the customer to discuss the discrepancy.
CS will only use the commercial invoice and the provided value if the customer is able to provide a reasonable explanation for any findings. CS will archive the findings and relating correspondence with the customer.
If CS can conclude based on the above analysis that the transaction value will apply.
Commercial invoice
If the transaction value method is applied, the customer must always provide the terminal with the commercial invoice relating to the relevant transaction.
share that information with CS and provide substantiating documentation, such as an invoice.
CS requests the customer to provide the customs value.
determined in accordance with the transaction value method. In such cases, the import service can only be booked in Atlas once an invoice has been uploaded.
The primary method for customs valuation is the transaction value method, which is the price actually paid or payable for the goods
when sold for export to the EU.
In exceptional cases, no invoice relating to the relevant transaction is available at the time of lodging the import declaration. In such cases, a simplified
CS performs a check to see if the invoice is valid and meets all legal requirements.
such cases, the system requires an invoice
Introduction
VTTI relies on the customer to provide information relating to the value of the product. The general terms and conditions applicable between VTTI and its customers confirm that the customer is responsible for the accuracy of this information. It is the responsibility of CS to assess whether the provided value is plausible and to contact the customer in case of doubt or apparent errors.
