Excluding interest charges from the customs value
Find out when to exclude interest charges from the customs value and what evidence you’ll need if you’re an importer or clearing agent.
Valuing goods can be complicated, so if you’re not an importer or clearing agent you may want to get someone to deal with customs for you.
When to exclude the interest charges
Interest charges can be excluded from the customs value if you import goods and they’re paid for under a financing arrangement, as long as the following provisions apply:
- the charges are shown separately from the price actually paid or to be paid for the goods on the documentation accompanying the entry to free circulation, for example on an invoice or valuation declaration
- the financing arrangement is in writing
These provisions apply to methods 1 to 6.
Evidence required to exclude the interest charges
You must be able to show HMRC that:
- the goods have been sold at the price declared, in this instance the price paid or to be paid (net of the interest charge)
- the rate of interest you have claimed is the same as the rate used under the finance arrangement in the relevant country
We may also ask you for further evidence to support any claim to exclude the interest charge from the customs value, for example:
- a copy of the finance agreement
- a copy of the contract of sale of the goods if it contains the financing clause
- information to show that the claimed rate of interest is not excessive
Requests to amend a customs declaration to exclude non-dutiable elements after the entry has been accepted and the goods released into free circulation will be considered on a case by case basis.