March 20, 2022
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Intrinsic value (e-commerce)

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What is the term 'intrinsic value' used for in customs?

The term 'intrinsic value' is used in several fields, such as investment, taxation, etc. In simple terms, it means the real value of an asset.

For customs purposes, the intrinsic value (note, it is not the 'customs value') of an item is important for the calculation of import VAT upon the importation of low-value consignments. The term is used for other purposes as well. For example, the lodging of an entry summary declaration might be waived in respect of goods in a consignment, the intrinsic value of which does not exceed 22 EUR.

What is the 'intrinsic value' of the goods?

Article 1(48) of the Regulation (EU) 2015/2446 sets out the definition of the term 'intrinsic value'.

Intrinsic value for commercial goods is the price of the goods themselves when sold for export to the customs territory of the Union, excluding transport and insurance costs, unless they are included in the price and not separately indicated on the invoice. Any other related costs, that do not reflect the value of the goods in themselves, must also be excluded from the intrinsic value, whenever they are separately and clearly indicated in the invoice (e.g. tooling costs, license fees, export tax, etc.).

Example 1. No information on additional costs
Item’s price: 100 EUR
Intrinsic value: 100 EUR

Example 2. Transport and insurance costs are separately indicated
Item’s price: 100 EUR
Transport costs: 18 EUR
Insurance costs: 5 EUR
Intrinsic value: 100 EUR

Intrinsic value for goods of a non-commercial nature is the price that would have been paid for the goods themselves if they were sold for export to the customs territory of the Union. The definition should also be understood in the same vein as for the commercial goods, meaning the value of the goods themselves, excluding any other costs, taxes or charges mentioned above.

Comments ()

en, lt
Baltic Master case in the CJEU: once again about related persons and the use of customs valuation IS
31-07-2022

On 13.06.2022, the Court of Justice of the European Union (CJEU) issued a decision in the Baltic Master case (C-599/20) on two relatively unrelated issues. The first, whether customs must establish an objective legal relationship between the buyer and the seller in order to consider them as related persons. The second, whether customs can rely on the value of a single comparable transaction found on the national customs valuation information system (IS), denying the acceptance of the declared value of the goods (air conditioning units). In this article, we discuss interpretations provided by the CJEU; and we look forward for the national verdict of the Supreme Administrative Court of Lithuania (SACL).

Monika Bielskienė

value of goods
en, lt
Baltic Master case in the CJEU: once again about related persons and the use of customs valuation IS
31-07-2022

On 13.06.2022, the Court of Justice of the European Union (CJEU) issued a decision in the Baltic Master case (C-599/20) on two relatively unrelated issues. The first, whether customs must establish an objective legal relationship between the buyer and the seller in order to consider them as related persons. The second, whether customs can rely on the value of a single comparable transaction found on the national customs valuation information system (IS), denying the acceptance of the declared value of the goods (air conditioning units). In this article, we discuss interpretations provided by the CJEU; and we look forward for the national verdict of the Supreme Administrative Court of Lithuania (SACL).

Monika Bielskienė

value of goods
lt
Ekspertės nuomonė Baltic Master bylos klausimu
31-07-2022

Malonu, kad buvau pakviesta pasidalinti savo asmenine ekspertine nuomone Baltic Master bylos klausimu. Esu tikra, kad bylos eigą akylai seka ne tik leidinio redakcinė kolegija, bet ir Lietuvos bei ES ir ne ES šalių muitinių atstovai, teisininkai, tarptautinio verslo specialistai, t. y., visi muitinės praktika besidomintys profesionalai.

Milda Stravinskė

value of goods
lt
Ekspertės nuomonė Baltic Master bylos klausimu
31-07-2022

Malonu, kad buvau pakviesta pasidalinti savo asmenine ekspertine nuomone Baltic Master bylos klausimu. Esu tikra, kad bylos eigą akylai seka ne tik leidinio redakcinė kolegija, bet ir Lietuvos bei ES ir ne ES šalių muitinių atstovai, teisininkai, tarptautinio verslo specialistai, t. y., visi muitinės praktika besidomintys profesionalai.

Milda Stravinskė

value of goods
en, lt
CJEU guidelines on the selection of identical or similar goods for determining the customs value
20-07-2022

Customs administration shall exercise due care in analysing the facts, gathering information and evidence for the use of each of the alternative methods for determining the customs value. This includes the duty of the customs authorities to consult all the information sources and databases available to them. Are customs authorities obliged to check information systems maintained by the EU? May identical or similar imports (which have not been challenged) of the same trader be excluded? What is the period, in which identical or similar imports are considered to be ‘made at the same or around the same time’? We look at the CJEU's answers to these questions.

Georgi Goranov

value of goods
en, lt
CJEU guidelines on the selection of identical or similar goods for determining the customs value
20-07-2022

Customs administration shall exercise due care in analysing the facts, gathering information and evidence for the use of each of the alternative methods for determining the customs value. This includes the duty of the customs authorities to consult all the information sources and databases available to them. Are customs authorities obliged to check information systems maintained by the EU? May identical or similar imports (which have not been challenged) of the same trader be excluded? What is the period, in which identical or similar imports are considered to be ‘made at the same or around the same time’? We look at the CJEU's answers to these questions.

Georgi Goranov

value of goods
en
Mission possible: how the WTO Valuation Agreement strikes a balance between trade facilitation and customs regulation
17-07-2022

Customs valuation is one of the largest challenges in international trade. That is why the rules of customs valuation are set out in an international treaty. On the one hand, this is aimed at harmonizing the valuation rules, while on the other hand, it is aimed at protecting economic operators from the arbitrariness of the authorities and, ultimately, at helping traders. Does it really work in practice, and does it serve both public and private interests in international trade? In the article, the peculiarities of customs valuation are highlighted, which are especially important to consider for those who deal with developing and least-developed countries.

Rizwan Mahmood

value of goods
en
Mission possible: how the WTO Valuation Agreement strikes a balance between trade facilitation and customs regulation
17-07-2022

Customs valuation is one of the largest challenges in international trade. That is why the rules of customs valuation are set out in an international treaty. On the one hand, this is aimed at harmonizing the valuation rules, while on the other hand, it is aimed at protecting economic operators from the arbitrariness of the authorities and, ultimately, at helping traders. Does it really work in practice, and does it serve both public and private interests in international trade? In the article, the peculiarities of customs valuation are highlighted, which are especially important to consider for those who deal with developing and least-developed countries.

Rizwan Mahmood

value of goods
image en, lt
Customs valuation: What should all stakeholders in the company know about it?
23-06-2022

Bertrand Rager

value of goods
image en, lt
Customs valuation: What should all stakeholders in the company know about it?
23-06-2022

Bertrand Rager

value of goods
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