Introduction of Customs Advance Valuation Rulings
This tax information and impact note details new legislation that will enable HMRC to grant Advance Valuation Rulings to customers importing goods into the UK. Advance Valuation Rulings are written decisions made by customs authorities at the request of a trader that are legally binding on both parties. They are a trade facilitation and are not mandatory. They will provide certainty to customers on how to arrive at the customs value for their goods. The customs value impacts the amount of duty that may be due. Advance Valuation Rulings will, in turn, assist customers in the completion of customs declarations.
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Legislation will be introduced in Spring Finance Bill 2023 to amend section 24 of the TCTA 2018 to additionally include customs valuation. To align with current provisions, Section 24 will similarly establish, by Notice with force of law, the system under which a customer may apply for an Advance Valuation Ruling for specified goods when they are imported into the UK. Once provided, the ruling decision will be legally binding on the customer and HMRC for the specified goods and scenario, for a period of three years, subject to cancellation or a withdrawal of the ruling.
The UK issues advance rulings in respect to tariff classification and origin of goods but has not previously provided advance rulings on customs valuation. However, they are widely offered by customs authorities worldwide.
The new Advance Valuation Ruling service will allow the UK to meet the requirements of new Free Trade Agreements and to support the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Additionally, Advance Valuation Rulings will contribute to HMG’s objective to deliver a modern digital customs service for traders in the UK.