Intrinsic value (e-commerce)

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.