Customs Value of Goods
The customs value of goods serves as a basis for calculating the ad valorem import duties. The declarant / customs representative is responsible for declaring the customs value of the goods and the items included therein.
Method of determining the customs value of the goods based on the transaction value, respectively based on the actual price paid or payable (method 1)
The initial basis for the customs value of the goods is the transaction value, i.e. the price actually paid or payable for the goods, adjusted, as the case may be, when the goods are sold for export to the customs territory.
Expenses to be included in the customs value
The following expenses shall be added to the transaction value if they have not been included in the price.
Transport and related costs:
- costs of transportation to the place of entry (road or railway, airport, or port of unloading)
- any charges related to loading, unloading, and handling associated with the transportation of goods
- insurance costs.
Containers and packages: payments to be made by the importer for the use and return of the package or container shall be included in the customs value, except when they are placed under temporary admission.
Fees: any brokerage fees, paid to reward the seller's agent or a third party for services relating to the sale of goods.
Auxiliary items delivered by the buyer and required for the production and sale of imported goods (e.g. parts, materials or special production tools or dies).
Means obtained from resale: income from resale, transmission, or subsequent use of the goods in the territory of the Republic of Moldova, to be gained, directly or indirectly, by the seller.
Royalties and licensing fees: payments made by the buyer to the seller or to a third party for certain intellectual property rights to use goods (e.g. patents, trademarks, copyrights).
Note: All the elements to be added should be based on objective and quantifiable data; at the same time, other elements not covered by the legal framework may not be added.
Requirements for declaring the customs value of goods
Method 1 shall be usually applicable to sale and purchase transactions. The actually paid or payable price shall represent the total amount of payments made, or to be made, by the buyer to, or for the benefit of, the seller for the imported goods and shall include all the payments made, or to be made, as a condition for sale of the goods imported by the buyer to the seller, or by the buyer to a third party, to fulfil an obligation of the seller. The payment can be made as a transfer of funds by either a letter of credit or a negotiable instrument and can be made directly or indirectly.
When applying method 1, the price with trade discount may also be accepted if it refers to the goods to be valued, and upon acceptance of the customs declaration, the commercial documents relating to the transaction stipulate the application, the conditions, and the amount of such discount.
At the same time, Method 1 shall not be applicable in the case of free deliveries (gifts, samples, promotional items); goods brought into the country on consignment; goods imported by branches that do not have legal personality; goods brought into the country under a rent or leasing contract; goods which are the subject of a loan, but which remain the property of the supplier.
Documents required to declare the customs value
When announcing the customs value, the declarant shall fill in the D.V.1 customs value declaration form, which is to be filed together with the customs declaration.
D.V.1 shall not be used where:
- the value of goods is less than, or equal to, 20,000 euros
- customs treatments exempted/suspended from payment of import duties
- the goods are brought into the country by natural persons
- the declarant is an AEO.
The supporting document relating to the customs value is the commercial document (bill or invoice) which refers to the declared value of the transaction.
The commercial invoice shall contain the basic information about the transaction, shall have no specific form as a document, shall be drawn up by the seller in accordance with standard commercial practices and shall be submitted in original together with the customs declaration.
The commercial invoice shall include as a minimum the following data:
- the identification data of the seller and the buyer of the goods subject to valued
- number and date of issuance of the invoice
- name, quantity, price for each unit and the total value of the goods
- conditions and method of payment
- discounts and the conditions of application thereof, as the case may be
- the delivery term according to the corresponding Incoterms
- means of transport.
At the request of the customs officer, in addition to the documents already presented for customs clearance, the declarant shall submit additional documents, depending on the specificity of the transaction, certifying the stated value, such as:
- the contract and addenda if any
- payment documents in case of prepayment
- the contract (order) for the provision of transport services or the bill of consignment, according to delivery conditions
- the goods insurance policy or contract, if goods were insured either according to delivery conditions or at the declarant's initiative.
In addition, where the customs authority establishes proven divergences between the data provided in the above-mentioned documents, identifies a risk of undervaluation of goods, it shall request in writing the submission of other documents relating to the import transaction (e.g.: contracts with third parties regarding indirect transactions; commercial correspondence; producers'/sellers' price catalogues, price offers (price lists) etc.).
Note: Where the customs officer, during customs clearance, does not accept the customs value of the goods declared according to Method 1, the right of reply shall be granted for a maximum of 30-day period, by submission of supporting documents or, upon request, release of goods under guarantee.
Release of goods under guarantee (postponing the determination of the customs value)
Where the customs value cannot be finally assessed during the customs clearance process, the goods may be released to the declarant, provided a financial guarantee is lodged. Thus, the release of the goods shall be conditional on the provision of a guarantee sufficient to cover the difference between the amount corresponding to the data indicated in the customs declaration and the amount that may be ultimately due.
The declarant may submit additional documents to confirm the customs value within 30 days. Where these documents confirm the customs vale of the goods, the guarantee shall be refunded. Where such documents do not confirm the declared value, the import duties shall be collected from the guarantee.
Where the declarant fails to submit the additional information or requested documents in due time and do not confirm the veracity of the declared value, the customs officer shall independently determine the customs value of the goods, by consecutively applying the stipulated methods.
In that situation, the declarant shall be obliged to amend the customs declaration and to pay the import duties recalculated from the customs value determined by the Customs Service. The decision may be challenged within 30 days at the Central Office of the Customs Service and, subsequently, in the court.
Other methods of customs valuation
Where the first method of customs valuation cannot be applied, other valuation methods shall be applied successively, as follows:
- Based on the value of transaction with identical goods (2nd method) – goods that are similar in all respects with the goods being valued, including in terms of physical characteristics, quality, market reputation, country of origin, manufacturer.
- Based on the value of a transaction with similar goods (3rd method) – goods that, although not identical, have similar characteristics and consist of similar components, which allows them to perform the same functions as the goods being valued and to be commercially interchangeable. When determining the similarity of goods, the following characteristics shall be considered: quality, availability of a trademark, market reputation, country of origin, manufacturer.
Those two methods shall be applied where the following conditions are met in relation to the identical or similar goods:
- the goods are sold to be brought into the territory of the Republic of Moldova
- the goods are exported at the same or approximately the same time with the goods to be valued
- the goods are imported approximately in the same quantity and/or under the same commercial conditions.
Where the identical or similar goods were brought in a different quantity and/or under different commercial conditions, the customs value shall be adjusted accordingly, taking into account those differences.
Where the value of one of several transactions with identical or similar goods may be taken as a basis when determining the customs value of the goods, the lowest transaction value shall be used.
- Based on the unit cost of goods (4th method). In that case, the customs value shall be based on the unit price for the sale of such goods, or the sale of identical or similar goods, in the largest total quantity, concurrently or almost concurrently with the import of the goods to be valued to persons who are not related to the seller, and provided the deduction of as follows:
- the commissions paid ordinarily or as agreed, or of the margin usually applied to profits and general expenses related to the sale of goods of the same category or type
- ordinary transport and insurance expenses, as well as related expenses incurred in the territory of the Republic of Moldova
- taxes and duties liable to be paid in connection with the importation or sale of goods.
- Based on the computed value of goods (5th method), which includes:
- the value or price of materials and manufacturing operations or of other works for the production of goods
- the amount of general profit and expense, equal to that included, usually, in the amount of sales of goods of the same category or type as the goods to be valued, manufactured by producers, with the destination of the country of import
- any other expenses for the transportation of goods to the place of entry of goods into the customs territory.
When the customs value cannot be determined under any of the above-mentioned methods of customs value determination, it may be determined using reasonable means consistent with the principles and general provisions of:
- the Agreement regarding the implementation of Article VII of the General Agreement on Tariffs and Trade from 1994
- Article VII of the General Agreement for Tariffs and Trade from 1994.
- Fall-back method (6th method) – the customs value shall be determined on the bases of available data if the customs value may not be determined under the previous methods. In this case, the value of the goods shall be determined, to the greatest extent possible, based on previously determined values.
At the same time, the following cannot be taken as a basis:
- the selling price in the customs territory of the goods produced in the customs territory
- a system under which the customs value is determined based on the higher of the two alternative values
- the price of goods in the domestic market of the country of exportation
- the cost of production, other than the calculated values that have been determined for identical or similar goods in accordance with Article 80 (3) p.4) of the Customs Code
- prices for export to a foreign country
- the minimum customs value
- arbitrary or fictitious values of goods.
Legislation:
Government Decision no. 92/2023 regarding the implementation of the Customs Code, Hotărârea Guvernului nr.92/2023 cu privire la punerea în aplicare a Codului Vamal
Order of the Customs Service no. 261-O of July 16, 2024 regarding the approval of Methodological Norms regarding the determination of customs value, Ordinul Serviciului Vamal nr. 261-O din 16 iulie 2024 cu privire la aprobarea Normelor metodologice referitor la determinarea valorii în vamă
Circular no. 577-C of 31.07.2024 regarding the Decisions of the WTO Evaluation Committee and the Instruments of the Customs Evaluation Technical Committee of the OMV regarding customs evaluation, Circulara nr. 577-C din 31.07.2024 cu privire la Deciziile comitetului de evaluare al OMC și Instrumentele Comitetului tehnic de evaluare în vamă al OMV privind evaluarea în vamă