Valuing imported goods if you’re claiming inward or outward processing relief
How to work out the customs value of imported goods if you’re claiming inward or outward processing relief.
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.
Before you try to work out the customs value of your imported goods you must first have read Prepare to work out the customs value of your imported goods.
Inward processing
You work out the customs value of your imported goods at the time the goods are entered to the relief. You do this by using one of the valuation methods.
Find out about customs special procedures including inward processing.
Outward processing
Working out the customs value if the processor charges for the cost of the process
Where your goods are reimported after processing outside the UK and the processor charges you for the cost of the process, you must try Method 1 (transaction value of the goods). The customs value will be based on the cost of the process.
All of the following items must be included in the customs value if not already in the processor’s charge:
- the value of the exported goods (if the goods are purchased from an unrelated person, the cost of acquisition is to be used — if the goods are produced by yourself or a related person, the cost of production is to be used)
- the value of any material rejected, lost or wasted before, during or after the process
- any third country Customs Duty or similar levy
Do not include outward freight and insurance in the built-up value. The exception to this is if the temporarily exported goods are invoiced cost, insurance and freight (CIF) and the outward freight and insurance is not shown separately. In this case the outward freight and insurance can be included in the built-up value.
Working out the customs value if the processor does not charge for the cost of the process
If the processor does not charge you for the cost of the process, you cannot use Method 1 because there is no payment. You must try:
- Methods 2 or 3 if you import identical or similar processed goods under Method 1
- Method 4 if you sell the processed goods or identical or similar processed goods to unrelated customers
- Method 5 if you can get the detailed costings of the processed goods
- Method 6 if you cannot use any of these methods — the customs value can be based on the charge that would have been made for the process, additions have to be made as previously explained
Find out more about customs special procedures including outward processing.