G/VAL/Q/GBR/3  
 
19 November  2021 
(21-8756) Page: 1/2 
Committee on Customs Valuation  Original: English  
 
 
NOTIFICATION UNDER ARTICLE 22 OF AGREEMENT  ON IMPLEMENTATION  
OF ARTICLE VII OF THE GENERAL AGREEMENT  
ON TARIFFS AND TRADE  1994  
REPLIES FROM THE UNITED KINGDOM TO QUESTIONS  FROM THE EUROPEAN UNION  
REGARDING DOCUMENT S G/VAL/ N/1/GBR/1 AND G/VAL/N/2/GBR/1  
UNITED KINGDOM  
The following communication, dated 22 October 2021, is being circulated at the request of the 
delegation of the United Kingdom . 
 
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EU Questions on UK Notification  
 
Question 1  
 
Regulation 118 of the Customs (Import Duty) (EU Exit) Regulations 2018 (G/VAL/N/1/GBR/1) 
references "a notice published by HMRC as operations constituting usual forms of handling of goods " 
and "sub-paragraph (b) of paragraph 11 of Schedule 2 to the Act”. Could the United Kingdom please 
provide a link or otherwise indicate where such legal instruments are available?  
 
Answer 1  
 
These legal instruments are made available on our GOV.uk website. We have included  the link to 
the Force of Law Notices for ea se of access. The relevant text can be found at Para 39:  Notices 
made un der the Customs (Import Duty) (EU Exit) Regulations 2018 .  
 
Question 2  
 
Regulation 108 of the Customs (Import Duty) (EU Exit) Regulations 2018 (G/VAL/N/1/GBR/1) 
provides that "HMRC may presume that where the buyer and seller of chargeable goods are related 
persons, in the application of Method 1 valuation, the transaction valu e of the goods is not the full 
value unless HMRC are satisfied to the contrary”. Could the United Kingdom please indicate if there 
are any legal provisions or guidance that detail the methodology used by HMRC to assess the 
transaction value between related  parties? If not, could the United Kingdom please describe its 
methodology?  
 
Answer 2  
 
Regulation 128 of the Customs (Import Duty) (EU Exit) Regulation 2018 details the cases where 
parties are related. Regulation 128 is supported by a notice with force of law (at Para 37/38).  Details 
are made available on our GOV.uk website as indicated in our response to question 1. Regulations 
108 and 128 are supported by p aragraph 3.10 of our public Notice 252  (Notice 252 ). In general 
terms – where the buyer and seller are related, the circumstances surrounding the sale is examined 
and the transaction value accepted as the customs value provided,  we are satisfied that the 
relations hip did not influence the price.  
 
 G/VAL/Q/GBR/3  
 
- 2 - 
 
  EU Questions on UK’s Checklist of Issues  
 
Question 1  
 
The United Kingdom’s response to question 5(b) of the Checklist of Issues (G/VAL/N/2/GBR/1) 
provides the following: "Upon request in the UK, an importer or exporter has the right to ask for an 
explanation in writing of how the customs value of imported or exported goods was determined. 
This can be done by asking for a review or appeal”. In turn, the United Kingdom’s resp onse to 
question 12(a) of the Checklist of Issues provides the following: "National legislation provides for 
the notification of import liability. We may not enforce a liability to import duty until the person liable 
has been notified. Our explanation on h ow we consider the liability arose is included in that 
notification. Importers are given the right to a review or appeal within that notification”. Could the 
United Kingdom please indicate whether importers can obtain an explanation in writing of how the 
customs value of the importer’s goods was determined prior to a review or appeal?  
 
Answer 1   
 
Where UK Customs has grounds to doubt the accuracy and authenticity of a Customs value declared 
as a Transaction Value, we will write to the importer setting out t he grounds for our doubts and 
requesting further information.  
 
By "accuracy and authenticity " of a declared Transaction Value, we have regard not only to whether 
the declared value includes all payments made directly or indirectly from the buyer to the se ller or 
for the benefit of the seller but also whether the value can validly be declared as a Transaction Value 
in the first place (for example, is the price influenced by the relationship between the buyer and the 
seller or is the declared Customs based o n an arbitrary and fictitious amount which does not 
represent the economic reality of the situation).  
 
If the further information provided does not dispel our doubts, we will determine that the goods 
cannot be valued under a Transaction Value and the importer will be required to value the goods 
under a secondary method of Customs Valuation. However, this would represent an adverse decision 
and would give rise to a Right to be Heard situation where Customs would set out in writing the 
grounds for our im pending decision that the goods cannot be valued under a Transaction Value. This 
would present the importer further opportunity to express their point of view and to provide further 
information prior to a formal Review or Appeal process.  
  
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