Every importer comes to a point in their life when they are faced with the eternal question: “Why do customs officials think my Chinese slippers are worth the same as Italian loafers?”
And it’s simple. This is the customs value. It’s like female logic: formally it’s calculated based on the invoice, but in reality, it’s calculated based on what the inspector sees.
What is customs value?
The Customs Code of Ukraine, in Article 49, tells us that – The customs value of goods moving across the customs border of Ukraine is the value of goods used for customs purposes, which is based on the price actually paid or payable for these goods.
As Aunt Tsilya from Odessa would say, “And customs officials are incomprehensible to the importer))))”
This is when you have agreed with a Chinese for $2, and the customs officer says:
— Dear, such a wonderful product cannot cost $2. We bought it for $5. We remember.
And they add:
— Nothing personal, we just have a base. And a methodology. And a risk-oriented approach.
What does this look like in practice?
You submit the documents:
Invoice — yes
Contract — yes
Payment — yes
Photo of the product — with a soul
And customs:
— Why is your product so cheap?
— Because the supplier is normal.
— Well, well… now we will help you remember how much it really costs.
Methods for determining customs value - like family advice:
- By invoice – if you’re lucky.
- By identical product – but from another supplier, somewhere in Poland.
- By similar product – like it looks like something else, but more expensive.
- Subtraction method – they take away your peace of mind.
- Addition method – they give you a headache.
- Backup method – as the last argument in a dispute with your mother-in-law.
How not to go crazy
- Keep all documents. Even those that seem unnecessary.
- Customs will find meaning in them.
- Do not understate invoices. If you understate, then NOT TOO MUCH!!!))))
- Work with a broker who knows when to keep quiet and when to say: “Mr. INSPECTOR, you yourself issued the same batch last time at this price!”
Result
Customs value is like the temperature in a customs officer’s office: the higher the degree, the greater the chance of correction.
Be honest. But with reason.
And remember: in customs, as in life, the main thing is that the documents are in order, and the inspector’s mood is stable.
