Value and origin
Customs value and origin, together with the goods code, determine what you pay. Both are subject to control afterwards, because both are a calculation and not a fixed given. These terms explain how you substantiate them.
- Bill of saleThe bill of sale is the proof of purchase, for vehicles the bill of sale. It substantiates the customs value and is not the same as the commercial invoice or a pro forma invoice.
- BTIA BTI is binding tariff information: a written decision of Customs on the goods code of a concrete product. It is valid for three years across the EU, for holder and Customs.
- ClassificationClassification is assigning the right goods code to a product. The code determines the rate, the measures and the documents. One digit wrong and the whole declaration follows the wrong rules.
- Customs valueThe customs value is the amount over which the import duties are calculated. As a rule that is the transaction value: the price paid or payable, increased by the costs up to the external border of the EU.
- EFTA countriesEFTA countries are Iceland, Liechtenstein, Norway and Switzerland. They are not in the EU, but they are in common transit, so a T1 or T2 can run through to inside the country itself.
- Invoice declarationAn invoice declaration is the origin statement the exporter puts on the invoice to claim preference. On its own it is not conclusive proof. Only the manufacturer can actually demonstrate origin.
- OriginOrigin is the country a product comes from in economic terms, which is something other than the country of dispatch. It decides the tariff, the trade measures and whether there is a right to a preferential tariff.
- Preference codesPreference codes and document codes are the codes on the import declaration with which you record origin, tariff treatment and the accompanying documents. Without the right document behind the code the third-country rate applies.
- VINThe VIN is the chassis number of a vehicle, seventeen positions. In Dutch vehicle import it is the key of the file: documents, statuses and declarations run per VIN, not per container alone.
Frequently asked questions about value and origin
What is the customs value?
The customs value is the amount on which the import duty is calculated. As a rule that is the transaction value: the price paid or payable, increased by freight, insurance and certain costs up to the external border of the EU.
Which costs count towards the customs value?
What counts are freight and insurance up to the EU border, royalties that are a condition of the sale, packaging, and materials the buyer has supplied free of charge. Costs after entry, such as inland transport and assembly, do not count when they are shown separately on the invoice.
What is non-preferential origin?
Non-preferential origin determines which country a product economically comes from, for statistics, anti-dumping and trade measures. It is the country where the last substantial processing took place, and it stands apart from preferential origin.
What is the difference between a EUR.1 and an origin declaration?
A EUR.1 is a certificate that the customs authority of the country of export issues and stamps. An origin declaration is one the exporter puts on the invoice himself, which is allowed up to a threshold amount or when he is a registered exporter.
What does preferential origin deliver?
Preferential origin gives entitlement to a reduced or zero rate of import duty on the basis of a trade agreement. It does require valid proof and the product has to meet the origin rules of that specific agreement.