Customs Talks: Binding Valuation Information – progress in implementation

05/28/2024
Reading time 2 Minutes

On April 15th the EU has published the amending Regulations to implement the Binding Valuation Information (BVI) into the EU-Customs-Regulations. The launch of the BVI is intended to create legal certainty when determining the customs value of imported goods. The published regulations are forecast to come into force on December 1st, 2027.

The BVI (COMMISSION IMPLEMENTING REGULATION (EU) 2024/1071 and COMMISSION DELEGATED REGULATION (EU) 2024/1072 ) is aimed at enabling companies in the European Union to obtain binding information from the customs administration before an import is carried out. The associated legal certainty in customs valuation issues should facilitate business planning and help to avoid customs valuation errors.
This should be of particular interest to companies that have similar, recurring business transactions or are involved in complex large-scale projects.
In future, the new instrument of the BVI will complement the existing instruments of binding tariff information (BTI) and binding origin information (BOI) and provide certainty on the application of customs valuation regulations throughout the EU in individual cases.

Will it be a game-changer?

No, but it will provide a further mean of risk mitigation in customs matters. Because customs valuation is very complex and by far, not easy. Several aspects need to be considered correctly, such as the applicable customs valuation method, the correct sales transaction and sales price, additions such as license fees, provisions, transport costs and so on. Not to mention the additional challenges of applying intercompany prices between related companies.
Thus, obtaining legal certainty is a big plus for business planning. The new instrument will support this and make such applications binding and easier. But even now companies can ask for a non-binding information pursuant to Art. 14 UCC to get an administrative – but non-binding – ruling.
Due to the high risk of duties and penalties for incorrect customs values, we recommend that companies review their customs valuation practices today and, if necessary, with the involvement of external experts.