The Misconception Customs valuation is widely perceived as a technical requirement, an exercise carried out at the point of import to ensure that duties and taxes are calculated correctly. In most businesses, it is treated as a procedural step, often delegated to customs agents (brokers) or embedded within compliance functions. This view is incomplete. Where…
The Court of Justice of the European Union (CJEU) has delivered important guidance on how traders should handle provisional pricing in customs declarations. The case arose from Tauritus (Case C‑782/23), a Lithuanian importer of fuel, which declared provisional prices at import, later subject to adjustment once the final price was determined by contract. Key Findings For…
Transfer Pricing and Customs Valuation are two fundamental parts of managing cross-border inter-company transactions. It is a central part of business operations. Yet, these two valuation methods can conflict with each other resulting in challenges with customs authorities or tax authorities. In this article, we’ll explore how transfer pricing and customs valuation intersect. In particular, we’ll look at why understanding both…
Proof of Export for VAT is a challenging area for many exporters. It is part of the export customs compliance requirements. It is critical because a proof of export is one of a set of conditions for zero-rating export VAT. Without a correct proof of export, exporters must therefore charge VAT on their export invoices….
Customs valuation sits at the core of international trade, yet it is frequently misunderstood. At its simplest, it determines the value of imported goods for the purpose of assessing duties and taxes. In practice, it defines the taxable base that directly shapes landed cost, margin, and competitive positioning across markets. What appears to be a…
A Quick Guide to Incoterms explaining what the terms are, why, where and when to use them, who should use them and how!