Second hand goods
Source: gov.uk (2025-06-25)

Information about second hand goods.

Used or second-hand goods fall into two categories:
- those not used by the importer before entry into free circulation
- those used by the importer in a non-UK country prior to entry into free circulation
If the goods fall into the first category and were not used by the importer before entry into free circulation, then the importer has to follow the rules set out in Method 1 to Method 6. For example, if the goods are imported immediately after the sale irrespective of whether the goods are second-hand then Method 1 should be able to be used.

Goods used by the importer in a non-UK country prior to entry into free circulation

When an importer acquires goods in a non-UK country and uses them prior to them being entered into free circulation within the UK then they may be worth less than the original purchase price. This depreciation in value will depend upon the extent to which the goods were used and the period over which they were used. If goods have depreciated in value, then the importer does not need to use Method 1 to value their goods when importing into the UK. The importer can try:
- Methods 2 or 3 if the importer imports identical or similar goods of the same age and in the same condition under Method 1
- Method 4 if the importer sells the goods or identical or similar goods to unrelated customers in the UK
If the importer cannot use any of these Methods, they must use Method 6. The customs value can be based on the value of the goods when acquired, less an amount for loss of value due to the usage. One approach that would be acceptable to customs in order to work out the loss of value due to usage requires an estimate of the life span of the product:

(Remaining life of the item ÷ Full life of the item) x The original purchase price of the goods = depreciated value

After any adjustment for depreciation in value the usual adjustments, for example for delivery costs - freight and insurance are then to be made to arrive at the customs value.

A positive value must be determined for customs duty purposes. Minimal book values, nil values or values for customs purposes only are not acceptable to Customs even if they may be accepted by HMRC for corporation tax purposes.

Example

Scenario

Company A is based in the UK. Company B is a subsidiary of Company A based in the EU. Company B bought a new unused 3D printer from a third party company and has used the 3D printer to manufacture prosthetics for 3 years. However, the manufacturing of prosthetic has been moved to Company A in the UK, therefore the 3D printer is imported into the UK.

Valuation treatment

As there is no sale of the goods between Company A and B Method 1 cannot be used. Method 2 and 3 cannot be used as Company A has not imported any other 3D printers. Method 4 cannot be used as Company A does not sell 3D printers to related or unrelated parties. Method 5 cannot be used as Company A is unable to provide production costs for the 3D printer. Method 6 can be used to value the goods under Method 1, with the depreciation in value of the used 3D printer considered. According to the 3D printer’s manufacturer’s guidance the printer has a lifespan of 10 years and cost 10,000 currency units. Using the equation above:

(3 ÷ 10) x 10,000 = 3,000

The depreciation of the 3D printer is 3,000 currency units. The original value of the printer was 10,000 currency units; therefore the depreciated value is 7,000 currency units.