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Royalties & Customs Valuation

2015-04-14 11.43.18

26th April 2016 – HMRC have issued some clarification on whether under the UCC (i.e. from 1st May 2016) Royalties & Licence fees will form part of the dutiable value of imported goods. The guidance states that inclusion depends on whether they are payable as a ‘condition of sale’. This means that the importer are unable to do anything with the goods without paying the fees. As these charges are often not included on the commercial invoice and paid as a lump sum or to a third party in advance of the goods being received in the UK the trader must agree a valuation simplification with HMRC. The usual accepted method is to apportion the cost across the shipments of the imported product. A retrospective adjustment is permitted in exceptional circumstances, but only with prior agreement with HMRC.

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