Transcript Transaction value – Art. 14 of the Customs Act

Customs Valuation
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Legal Framework
• The Customs Act No 88/2005
• Chapter V., Articles 14-19
• Regulation No 1100/2006 on the custody
and customs clearance of goods
• Chapter VII., Articles 52-70
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Transaction Value
• Art. 14 of the Customs Act
• The Customs value of imported goods is the
transaction value, i. e. the price actually
paid or payable for the goods when sold for
export to the country [...]
• The same conditions apply as in the WTO
Valuation Agreement
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Inclusions
• Art. 15 of the Customs Act
• Commissions and brokerage, costs of containers and the
the cost of packing
• The value of materials, components ... incorporated in
the goods; tools, dies, moulds ... used in the production;
materials consumed in the production; engineering,
design work, plans ... necessary for the production
• Royalties and license fees related to the goods that the
buyer must pay as a condition of sale
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Inclusions
• Art. 15, paragraph 2, of the Customs Act
• The cost of transport of the imported goods to
the port or place of importation
• Loading, unloading and handling charges
associated with the transport of the imported
goods to the port or place of importation
• The cost of insurance
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Inclusions
• Art. 15, paragraph 4, of the Customs Act
• Costs and charges referred to in paragraph 2
(insurance, transport, loading, unloading and
handling charges) shall be included in the
customs value, regardless of whether the
costs and charges were actually paid or not,
provided that they can be determined on the
basis of objective and quantifiable data
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Legal Basis of Regulation 1100/2006
• Art. 18 of the Customs Act
• Minister can issue further rules concerning the
determination of customs value, taking into
account the implimentation of Art. VII of GATT
• The rules shall [...] specify how the customs value
shall be determined in cases when the customs
value of imported goods cannot be determined
according to Art. 14 (Transaction value method)
and that which shall be added to the customs
value according to the provisons of Art. 15
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Legal Basis of Regulation 1100/2006
• Art. 18 of the Customs Act
• In the same way the Minister is authorized to issue
rules concerning the assessment of the customs
value of goods and rules of procedure in case there
is reason to doubt the veracity of invoices and other
factors mentioned in Article 14 and that which shall
be added to the customs value according to the
provisions of Article 15
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Rate of Exchange
• Art. 19 of the Customs Act
• Customs value shall be based on an official
adjustment rate of exchange registered by the by
the Central Bank the last weekday before customs
clearance
• The rate of exchange for ... for currencies not
registered by the Central Bank of Iceland shall be
decided by the Director of Customs in consultation
with the Central Bank of Iceland
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Contesting a Transaction Value
• Art. 56 of the Regulation
• If the director of customs sees reason to doubt or
verify the veracity of information contained in a
customs declaration or accompanying documents
concerning the transaction value of goods [...] the
director may require the person responsible for the
information in question [...] to supply further
clarification or documents in proof that the
transaction value is correctly stated
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Contesting a Transaction Value
• Art. 56 of the Regulation
• If the director of customs doubts the veracity of
information concerning the transaction value,
notwithstanding the clarifications or documents
supplied, or if further clarifications or documents
are not supplied to the director of customs within a
reasonable time limit, the transaction value cannot
be used as a basis for the determination of the
customs value
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Valuation Hierarchy
• Transaction value – Art. 14 of the Customs Act
• Transaction value of identical goods – Art. 57 of the
Regulation
• Transaction value of similar goods – Art. 58 of the
Regulation
• Value based on unit price – Art. 60 of the Regulation
• Computed value – Art. 61 of the Regulation
• Other means consistent with the WTO Valuation
Agreement – Art. 62 of the Regulation
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Importation of Vehicles
• Special provisons in Art. 63-70 of the
Regulation
• Apply to vehicles classified under
headings Nos. 8701 to 8706 and 8711 of
the Customs Tariff
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Importation of Vehicles
• Art. 64 of the Regulation
• Gathering of information from neutral parties
abroad on comparable values of vehicles.
• Comparison of the transaction value of vehicles to
the reference value of identical vehicles in the
country of purchase.
• Examination of whether the transaction value is
abnormally low.
• If there is reasonable grounds to doubt the veracity
of the customs declaration or accompanying
documents the transaction value will be contested
according to Art. 56
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Importation of Vehicles
• Art. 65 of the Regulation
• The customs value shall be the reference value of a
new vehicle of the same type and subtype as
specified in the List of Vehicles prepared by the
Director of Internal Revenue, computed in
accordance with the provisions of Art. 66
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Importation of Vehicles
• Art. 66 of the Regulation
• Retail price of the vehicle as specified in the List of
Vehicles prepared by the Director of Internal
Revenue,
• Value added tax, an estimated 12% seller’s
mark-up, commodity tax and an estimated
amount covering the charges included in the
customs value shall be deducted from the retail
price,
• Then the value shall be depreciated, according
to the age of the imported vehicle
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Importation of Vehicles
• Art. 67 of the Regulation
• Reduction of the customs value on grounds of
worse condition of the vehicle than would result
from normal wear
• Importer has to demonstrate that the value of the
vehicle is less than that of normal vehicles of the
same type and subtype
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Importation of Vehicles
• Art. 68 of the Regulation
• If the vehicle is not to be found in the List of Vehicles
of the Director of Internal revenue, a probable retail
price of the type being imported shall be
determined and the customs value computed in
accordance with Art. 66
• Art. 69 of the Regulation
• Special depreciation procedure for residents abroad
immigrating to the country if they bring along a
vehicle
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Gap Analysis
• Icelandic rules on customs valuation are in
accordance with the WTO Valuation Agreement
and thus very similar to the rules of the EU
• Special provisions on the importation of vehicles
• Currency exchange rate
• Transport, insurance, loading, unloading and
handling fees are included in the customs value
regardless of whether they were actually paid or
not
• No simplified procedure
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Thank you for your
attention!
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