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.