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Customs Talks: Binding Valuation Information – progress in implementation

Customs Talks: If your business is involved in importing goods into the European Union, customs valuation is an important part of the process. The European Commission recently implemented a new tool for customs valuation which should provide more certainty for business.

The new rules published by the European Commission concern how the customs authorities in the EU Member States should make decisions relating to Binding Tariff Information (BTI) and Binding Origin Information (BOI) requests.

Additionally, a new regulation is to be implemented: the Binding Valuation Information (BVI). The BVI will complement the already existing instruments of BTI and BOI The introduction of the BVI is intended to offer legal certainty when determining the customs value of imported goods. The BVI will make it possible to request a binding decision on the customs valuation which will be valid throughout the EU. The published regulations will apply from 1 December 2027 onward.

BVI: a groundbreaking development?

The BVI instrument is intended to enable businesses in the EU to obtain binding information from the customs administration before an import is carried out, thus increasing transparency, certainty and uniformity on the application of customs valuation regulations throughout the EU in individual cases.

This instrument will provide a further tool for risk mitigation in customs matters. However, customs valuation is very complex and always case specific. A BVI will only apply to a particular set of circumstances, such as the applicable customs valuation method, sales price and additions such as license fees, transport costs. Even after the BVI system is implemented, determining the customs value should be done on a case-by-case basis, taking into account all the relevant facts and circumstances.

Obtaining legal certainty beforehand will prove beneficial for business planning. However, given the high risk of duties and penalties in cases of incorrect customs values, we recommend that businesses regularly review their customs valuation practices.

Baker Tilly International: global expertise

If you would like to know more about the BVI, please read this article by our Baker Tilly International network partners in Germany. Our global Baker Tilly International network has experts located all over the world, which means we are perfectly positioned to assist you with any global trade matters. If you have any questions about the BVI, customs or the VAT issues your company may face, please feel free to contact our VAT & Customs Advisory experts Stevie Mols or Marisa Hut.

The legislation and regulations in this area may be subject to change. We recommend that you discuss the potential impact of this with your Baker Tilly advisor.