G/VAL/N/2/GBR/1  
 
12 January 2021  
(21-0401) Page: 1/6 
Committee on Customs Valuation  Original: English  
 
 
 INFORMATION ON IMPLEMENTATION AND ADMINISTRATION  
OF THE AGREEMENT ON CUSTOMS VALUATION  
 
CHECKLIST OF ISSUES  
UNITED KINGDOM  
The following communication, dated 1 January 2021 , is being circulated at the request of the 
delegation of the United Kingdom.  
 
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The Delegation of the United Kingdom hereby submit the following answers to the questions 
contained in checklist of issues.  
 
1. Questions concerning Article  1: 
(a) Sales between related persons:  
(i) Are sales between related persons subject to special provisions?  
Yes, i n the UK sales between related persons are subject to the same conditions as laid 
out in the WTO Agreement on Customs Valuation. Definitions of related persons and 
their treatment are outlined in  the following UK legislation:  
 
- Taxation (Cross -border Trade) Act 2018 Part 1  16. Available at: 
http://www.legislation.gov.uk/ukpga/2018/22/contents/enacted   
- The Customs (Imp ort Duty) (EU Exit) Regulations 2018  PART 12  
CHAPTER  1  107. Available at:  
http://www.legislation.gov.uk/uksi/2018/1248/contents/made   
- The Customs (Import Duty) (EU Exit) Regul ations 2018  PART 12  CHAPTER 1  
112 (4) (a) (i & ii). Available at:  
http://www.legislation.gov.uk/uksi/2018/1248/contents/made    
- The Customs (Import Duty) (EU Exit) Regulations 2018  PART 12  CHAPTER 6  
128. Available at: http://www.legislation.gov.uk/uksi/2018/1248/contents/m ade  
 
(ii) Is the fact of intercompany prices prima  facie considered as grounds for 
regarding the respective prices as being influenced?  
Where it is considered that intercompany prices may have had an influence on price, 
the UK will consider the details  of the sale to decide if influencing has occurred.  
 
The following UK legislation  defines related companies:  
 
- Taxation  (Cross -border Trade) Act 2018  Part 1  Section 16. Available at: 
http://www.legislation.gov.uk/ukpga/2018/22/contents/enacted   
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  - The Customs  (Import Duty) (EU Exit) Regulations 2018  PART 12  CHAPTER 6  
128 (2) a to d. Available at:  
http://www.legislation.gov.uk/uksi/2018/1248/contents/made     
 
(iii) What is the provis ion for giving the communication of the afore -mentioned 
grounds in writing if the importer so requests? (Article  1.2(a))  
Where the UK believes  that a relationship has influenced a price, the importer will be 
informed in writing or otherwise, and at the sam e time the importer shall be informed 
of their right to appeal or review that decision.  
 
The following UK legislation  is applicable:  
 
- Finance Act 1994  Part 1  chapter II  14 (2) and (3). Available at: 
http://w ww.legislation.gov.uk/ukpga/1994/9/contents   
 
(iv) How has Article  1.2(b) been implemented?  
In determining if a transaction value is acceptable, the UK will consider the details of 
the sale to determine if any relationships betwee n the buyer and seller has influenced 
that transaction value. Where a relationship has not been deemed to influence the price, 
and the provisions otherwise provided in Article 1 have been met, the price paid or 
payable shall be accepted.   
 
The following U K legislation is applicable:  
 
- The Customs (Import Duty) (EU Exit) Regulations 2018  PART 12  CHAPTER 2 
108. Available at:   
http://www.legislation.gov.uk/uksi/2018/1248/contents/made   
 
 (b) Price of lost or damaged goods:  
Are there any special provisions or practical arrangements concerning the valuation 
of lost or damaged goods?  
Yes, w here goods can be proved to be lost or damaged the UK will consider its effect on the 
overall value of those goods, and where appropriately satisfied accept an adjustment to the 
value.  
 
The following UK legislatio n is applicable:  
 
- The Customs (Import Duty) (EU Exit) Regulations 2018  PART 12  CHAPTER 3. Available 
at:   http://www.legislation.gov.uk/uksi/2018/1248/contents/made   
 
2. How has  the provision of Article  4 to allow the importer an option to reverse the 
order of application of Articles  5 and 6 been implemented?  
The UK allows the application of Articles 5 and 6 to be reversed where the use of Article 6 above 
Article 5 is reasoned to  be the appropriate course of action, and where evidence to this effect can 
be produced upon request.  
 
The following UK legislation is applicable:  
 
- The Customs (Import Duty) (EU Exit) Regulations 2018  PART 12 CHAPTER 2  108 (3a). 
Available at: http://www.legislation.gov.uk/uksi/2018/1248/contents/made   
 
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  3. How has Article  5.2 been implemented?  
Where neither identical nor similar imported goods are sold in the country of importation, the 
application of a unit price derived from the greatest aggregate quantity sold is accepted by the UK 
assuming that this selling price can be a dequately evidenced.  
 
The following UK legislation is applicable:  
 
- The Customs (Import Duty) (EU Exit) Regulations 2018  PART 12  CHAPTER 5  123. Available 
at: http://www.legisla tion.gov.uk/uksi/2018/1248/contents/made   
 
4. How has Article  6.2 been implemented?  
The UK requires upon request, the provision of evidence on how a customs value was arrived at. If 
this information is not provided the value may be challenged by the UK aut horities. The UK will not 
endeavour to compel non -UK resident persons to provide access to any account or other record used 
to arrive at a computed value, but will seek verification of the evidence through mutual recognition 
arrangements with relevant auth orities.   
 
The following UK legislation is applicable to provision of evidence:  
 
- Taxation (Cross -border Trade) Act 2018  Part 1  Supplementary  25 and 26. Available at: 
http:// www.legislation.gov.uk/ukpga/2018/22/contents/enacted   
 
- The Customs (Import Duty) (EU Exit) Regulations 2018  PART 12  CHAPTER 2  110. Available 
at: http://www.legislation.gov.uk/uksi/2018/1248/contents/made   
 
5. Questions concerning Article  7: 
(a) What provisions have been made for making value determinations pursuant to 
Article  7? 
Where the value of imported goods cannot be determined under the terms  of Articles 1 to 6, the UK 
will flexibly apply aspects of those articles to arrive at a customs value. This value shall be based on 
data which can be evidence and is available in the country of importation.  
 
The following UK legislation is applicable:  
 
- Taxation (Cross -border Trade) Act 2018  Part 1  16 (6)(b). Available at: 
http://www.legislation.gov.uk/ukpga/2018/22/contents/enacted   
 
- The Customs (Import Duty) (EU Exit) Regulations 2018  PART 12  CHAPTER 5  126. Available 
at:  http://www.legislation.gov.uk/uksi/2018/1248/contents/made   
 
(b) What is the provision for informing the importer  of the customs value determined 
under Article  7? 
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 rev iew or appeal.  
 
The following UK legislation is applicable:  
 
- Finance Act 1994  Part 1  chapter II  14 (2) and (3). Available at: 
http://www.legislation.gov.uk/ukpga/1994/9/contents   
 
(c) Are the prohibitions found in Article  7.2 delineated?  
Yes, i n the UK when determining the customs value of goods, it shall be done in line with the 
principles for the valuation of goods adopted by the  WTO in the Agreement on Implementation of 
Article VII of the General Agreement on Tariffs and Trade 1994.  
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  6. How have the options found in Article  8.2 been handled? In the case of f.o.b. 
application, are ex -factory prices also accepted?  
In the UK information on what should be included or excluded from the customs value, including in 
the case of f.o.b, are covered by the following legislation:  
 
- The Customs (Import Duty) (EU Exit) Regulations 2018  PART 12  CHAPTER 3   111. Available 
at:   http://www.legislation.gov.uk/uksi/2018/1248/contents/made   
 
7. Where is the rate of exchange published, as required by Article  9.1? 
The UK publishes exchange rates to be used for the conversion of currency via its public domain 
website  at https://www.gov.uk/government/collections/exchange -rates-for-customs -and-vat  
 
The following UK legislation is applicable:  
 
- Taxation (Cross -border Trade) Act 2018  Part 1  18. Available at: 
http://www.legislation.gov.uk/ukpga/2018/22/contents/enacted   
 
8. What steps have been taken to ensure confidentiality, as required by Article  10?  
The UK treats all information provided for customs valuation purposes as confidential. It does not 
disclose information without permission from the person or government it originated from.  
 
The UK sets out its handling of confidential data in the following le gislation:  
 
- Data Protection Act 2018  CHAPTER 12.  Available at: 
http://www.legislation.gov.uk/ukpga/2018/12/enacted   
- Taxation (Cross -border Trade) Act 2018  Part 1  25. Available at: 
http://www.legislation.gov.uk/ukpga/2018/22/contents/enacted   
 
9. Questions concerning Article  11: 
(a) What rights of appeal are open to the importer or any other person?  
(b) How is he to be informed of his right to further appeal?  
In the UK anyone who disagrees with a customs decision has the right to appeal that decision. 
Notification of intent to appeal must be made within 30 days of the date the document notifying a 
customs  decision was received.  
 
The following UK legislation is applicable:  
 
- Finance Act 1994  Part I   Chapter  II  13A to 16. Available at: 
http://www.legislation.gov.uk/ukpga/1994/9/contents   
 
10.  Provide information on the publication, as required by Article  12, of:  
(a) (i) The relevant national laws;  
All UK laws are publicly available on https://www.legislation.gov.uk/    
 
See: 
Taxation (Cross -border Trade) Act 2018 Part 1 section 16. Available at: 
https://www.legislation.gov.uk/ukpga/2018/22/section/16/enacted    
 
The Customs (Import Duty) (EU Exit) Regulations 2018 PART 12 . Available at:  
 https://www.legislation.gov.uk/uksi/2018/1248/part/12/made   
 
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  (ii) The regulations concerning the application of the Agreement:  
All UK laws are publicly available on https://www.legislation.gov.uk/   
(iii)  The judicial decision and administrative rulings of general application relating 
to the Agreement:  
Judgements in the UK are publicly available on  Judgments | Courts and Tribunals 
Judiciary  
(iv)  General  or specific laws being referred to in the rules of implementation or  Application  
All UK laws are publicly available on  https://www.legislation.gov.uk/  
(b) Is the publication of further rules anticipated? Which topics would they cover?  
No further rules are currently anticipated . 
11. Questions concerning Article  13: 
(a) How is the obligation of Article  13 (last sentence) being dealt with in the respective 
legislation?  
Where the value of goods cannot immediately be decided, they may be released under 
condition that suitable guarantees have been provided.  
 
The following UK legisl ation is applicable:  
 
- The Customs (Import Duty) (EU Exit) Regulations 2018  PART 10  (94) to (101). 
Available at: http://www.legislation.gov.uk/uksi/2018/1248/contents/made   
- Taxation (Cross -border Trade) Act 2018  schedule 1  17 (1) to (7)(b). Available at: 
http://www.legislation.gov.uk/ukpga/2018/22/contents/enacted   
 
(b) Have additional explanations be en laid down?  
UK legislation as detailed in our response to question 11 (a) is considered comprehensive 
enough that additional explanation is not required.  
 
12. Questions concerning Article  16: 
(a) Does the respective national legislation contain a provision requiring customs 
authorities to give an explanation in writing as to how the customs value was 
determined?  
National legislation provides for the notification of import liability. We may not enforce a 
liability to import duty until the person lia ble has been notified. Our explanation on how we 
consider the liability arose is included in that notification. Importers are given the right to a 
review or appeal within that notification.  
 
The following UK legislation is applicable:  
 
- Finance Act 1994  Part 1  chapter 2  14 (2) and (3). Available at: 
http://www.legislation.gov.uk/ukpga/1994/9/contents   
- Taxation (Cross -border Trade) Act 2018  Part 1  Schedule 6. Available at: 
http://www.legislation.gov.uk/ukpga/2018/22/contents/enacted    
 
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  (b) Are there any further regulations concerning an above -mentioned request?  
No further regulations are considered necessary.  
 
13.  How have the Interpretative Notes of the Agreement been included?  
The UK has represented the Interpretative notes of the GAAT 1994 within its national legislation.  
 
The following UK legislation is applicable:  
 
- Taxation (Cross -border Trade) Act 2018  Part 1  Section 16. Available at: 
http://www.legislation.gov.uk/ukpga/2018/22/contents/enacted   
- The Customs (Import Duty) (EU Exit) Regulations 2018  PART 12. Available at: 
http://www.legislation.gov.uk/uksi/2018/1248/contents/made   
 
14. How have the provisions of the Decision  on the Treatment of Interest Charges in the 
Customs Value of Imported Goods been implemented?  
When and how interest charges should be excluded for the purpose of valuation has been defined in 
UK law.  
 
The following UK legislation is applicable:  
 
- The Cu stoms (Import Duty) (EU Exit) Regulations 2018 PART 12  Chapter 4  117 (1) to (4). 
Available at: http://www.legislation.gov.uk/uksi/2018/1248/contents/made   
 
15. For those countries  applying paragraph  2 of the Decision on the Valuation of Carrier 
Media Bearing Software for Data Processing Equipment, how have the provisions of 
this paragraph been implemented?  
When determining the customs value of carrier media, the UK has aligned its practices with 
decision  4.1 of the WTO Valuation Committee, whereby only the value of the carrier medium itself 
is taken into account, not the data it contains, provided this is distinguished from the value of the 
carrier medium itself.     
 
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