Customs Value — when sold DDP
Customs value – when sold DDP
The import duty itself is not part of the customs value, provided that the duty is separately shown on the invoice. In this particular case, customs raised an assessment for the retrospective collection of duties. Customs calculated the duties based on the invoice, which did not show any duties because the importer thought it wasn’t subject to duties.
Let’s assume the invoice was for € 10.000 and the applicable tariff was 5%. As a result the duty was calculated at € 500. The importer though, argued that the € 10.000 was the total price including duties. Therefore the duty ought to be € 476 (5/105* 10.000).
Customs argued that the duties had not been shown separately, but ECJ ruled in favor of the importer, and said that since products were sold under the condition DDP (Delivery Duty Paid) – and that condition of the sale was included in the customs declaration- the duty was considered to be show separately.