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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 any of the following cases:

situations (article 70(3) UCC):

  • where there

    Restrictions areon use or resale
    If the buyer is restricted in how they can use or resell the goods, except for standard restrictions as(e.g. tolegal the disposal or use of the goods by the buyer, other than those imposed by law or public authorities in the Union, limitations on therequirements, geographical arearesale of resale,limits, or restrictions that do not substantially affect the customs value of the goods;

    goods).

  • where

    Price depends on unclear conditions
    If the sale oragreed price is subjectinfluenced toby conditions or considerationsarrangements for which ano clear value cannotcan be determined with(for respectexample: bundled deals, unknown future compensations, or non-quantifiable obligations).

  • Proceeds flow back to the goodsseller
    beingIf valued;

  • wherethe seller receives (directly or indirectly) part of the proceeds offrom anythe subsequentbuyer’s resale, disposalresale or use of the goodsgoods, byand this cannot be properly adjusted in the buyercustoms accruesvalue.

    directly
  • or

    Relationship indirectly toinfluences the seller,price
    unless an appropriate adjustment can be made;

  • whereIf the buyer and seller are related and thethere are indications that this relationship has influencedaffected 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;
    • Ensure that the invoice doesn't contain an indication that the price can be adjusted at a later stage;
    • Whether the buyer and the seller are related.


    Buyer and seller are related 


    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 
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