• Topic spotlight

Buying commission: should it or should it not be included in the customs value?

Dr Ilona Mishchenko Associate Professor of the Maritime and Customs Law Department, National University "Odesa Law Academy"
August 25, 2024
Buying commission: should it or should it not be included in the customs value?

Photo by Cottonbro studio from Pexels

This year, the European Commission published an updated Compendium of customs valuation (Compendium 2024) with several important updates that promise to have a significant impact on the customs valuation process. While its aim is to harmonise the application of legislation and minimise disputes between businesses and customs, it is likely that some of these updates will actually increase the already high number of disputes in this area. This article examines the new Comment No 19 on the buying commission and its implications for enforcement.

OR

Continue reading this article

Open for free

Comments ()

Similar content

Country update
icon
Supervision costs to make a foodstuff "Kosher" are dutiable in Israel
13-10-2024

Customs valuation disputes are very common worldwide. In Israel, valuation disputes concerning foodstuff supervision costs were resolved few years ago, in favour of the State. It was ruled that … these supervision costs are inseparable from the goods value, and therefore dutiable.

Omer Wagner

€
valuation
Country update
icon
Supervision costs to make a foodstuff "Kosher" are dutiable in Israel
13-10-2024

Customs valuation disputes are very common worldwide. In Israel, valuation disputes concerning foodstuff supervision costs were resolved few years ago, in favour of the State. It was ruled that these supervision costs are inseparable from the goods value, and therefore dutiable.

Omer Wagner

€
valuation
Case law
icon
The resale of fruit and vegetables at a loss does not automatically means fraudulent manipulation of the customs value. What is needed more?
06-06-2024

The previous article discussed the legal basis for the customs valuation of certain types of fruit and vegetables and the verification of the accuracy of such valuation. This article focuses … on a specific case considered by the Bulgarian courts and subsequently referred to the Court of Justice of the EU. The Court of Justice of the EU has issued a preliminary ruling, which should bring more clarity for the procedures related to customs valuation of fruit and vegetables imported into the EU.

Georgi Goranov

€
valuation
Case law
icon
The resale of fruit and vegetables at a loss does not automatically means fraudulent manipulation of the customs value. What is needed more?
06-06-2024

The previous article discussed the legal basis for the customs valuation of certain types of fruit and vegetables and the verification of the accuracy of such valuation. This article focuses on a specific case considered by the Bulgarian courts and subsequently referred to the Court of Justice of the EU. The Court of Justice of the EU has issued a preliminary ruling, which should bring more clarity for the procedures related to customs valuation of fruit and vegetables imported into the EU.

Georgi Goranov

€
valuation
Explainer
icon
The special features of the customs valuation of imported fruit and vegetables
04-06-2024

This article is the first, introductory part of the article based on the judgment of the European Court of Justice (ECJ). This judgment concerns the customs valuation of certain types of fruit … and vegetables in the EU, which has its own peculiarities compared to the valuation of other goods. Therefore, in this article, the author explains these peculiarities of the customs valuation mechanism and in the second part, the judgment itself is reviewed.

Georgi Goranov

€
valuation
Explainer
icon
The special features of the customs valuation of imported fruit and vegetables
04-06-2024

This article is the first, introductory part of the article based on the judgment of the European Court of Justice (ECJ). This judgment concerns the customs valuation of certain types of fruit and vegetables in the EU, which has its own peculiarities compared to the valuation of other goods. Therefore, in this article, the author explains these peculiarities of the customs valuation mechanism and in the second part, the judgment itself is reviewed.

Georgi Goranov

€
valuation
Explainer
icon
Year-end transfer pricing adjustments and the customs value
11-02-2024

Customs value and transfer pricing could be likened to Siamese twins - that's how closely linked they are. Let's discuss some practical questions related to the year-end transfer pricing adjustments: … If the price is revised upwards, does the importer have to go to customs and pay additional duties? If the price is revised downwards, is the importer entitled to a refund of duties? If the goods are duty-free and there is no excise duty, but only import VAT (which is deductible in any case)?

Omer Wagner

€
valuation
Explainer
icon
Year-end transfer pricing adjustments and the customs value
11-02-2024

Customs value and transfer pricing could be likened to Siamese twins - that's how closely linked they are. Let's discuss some practical questions related to the year-end transfer pricing adjustments: If the price is revised upwards, does the importer have to go to customs and pay additional duties? If the price is revised downwards, is the importer entitled to a refund of duties? If the goods are duty-free and there is no excise duty, but only import VAT (which is deductible in any case)?

Omer Wagner

€
valuation
Country update
icon
Discount for customs purposes? On one condition
04-02-2024

The Israel Customs Authority does not seem to be a fan of discounts. It appealed against the judgement of the District Court, in which the court clarified that the Customs Authority cannot, on … the one hand, rely on the fact that the price is subject to a condition (discount) that cannot be assessed and the transaction price is therefore invalid, and, on the other hand, base the assessment on the transaction price but without the condition. Let's take a look at what the Supreme Court had to say in this dispute. The disputed amount is about ILS 5 million (~1.3 million Eur).

Omer Wagner

€
valuation
Country update
icon
Discount for customs purposes? On one condition
04-02-2024

The Israel Customs Authority does not seem to be a fan of discounts. It appealed against the judgement of the District Court, in which the court clarified that the Customs Authority cannot, on the one hand, rely on the fact that the price is subject to a condition (discount) that cannot be assessed and the transaction price is therefore invalid, and, on the other hand, base the assessment on the transaction price but without the condition. Let's take a look at what the Supreme Court had to say in this dispute. The disputed amount is about ILS 5 million (~1.3 million Eur).

Omer Wagner

€
valuation
support@customsclear.net +370 664 26393 (EN, RU) 37066426393 (LT) +37064465553 (DE)
Login Sign up
Forgot password?

* Mandatory fields

By signing up you agree to the Terms of Use and Privacy Policy

Password reset

Check your e-mail, we sent you a link to reset your password.
Login with Google Login with LinkedIn
Contact us

Contact us

Thank you for report
Maximum file size 6mb
File is too large