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Posted Mon, 08 Jan 2024 15:06:33 GMT by Dumitru Mihalca
Good afternoon, We are the declarant on several shipments with a value of over £20,000. Would the below statement from our customer (which is NOT always the importer - can be a 3rd country freight forwarder) be enough to keep as evidence for using Valuation Method 1? We confirm that as per terms of using VM1 : This is the price paid or payable by the buyer to the seller for the goods when they are sold for export to the UK. This is the last sale for export to the UK. If anyone can advise, this would be much appreciated.
Posted Tue, 09 Jan 2024 09:50:46 GMT by Customs oldtimer
I don’t work for HMRc but I assume you are taking this reference to shipments over £20,000 from the guidance notes to CDS data element 4/16. The notes are guidance for declarants/ representatives who are taking instructions from importers as to the correctness of using VM1. They must receive positive instructions from the importer ( legal customs debtor) to use method 1. It is unlikely that a third country freight forwarder would be in any position to confirm the correct import value to be declared by importer/ buyer as they would not usually have sufficient knowledge about the circumstances of the sale. For instance would they know if there is any additional charges invoiced separately such as royalties, or assists etc. In fact would a 3rd country freight forwarder be in a position to provide UK import clearance instructions at all if they are not the importer into the UK . The importer should keep evidence of the correct value including contract information and evidence of payment.
Posted Tue, 09 Jan 2024 10:07:51 GMT by Dumitru Mihalca
This is exactly where it gets difficult for us. For example, we are working with a forwarder from USA who provides us the full documentation for as example: - shipments from Boeing USA to Ryanair Stanstead. In this case we do not have a direct relation with RyanAir, so the USA forwarder as our customer has to request this confirmation for us and provide clearance instructions when needed. Of course they have no idea of what or why we are asking this confirmation in regards to Valuation Methods. This is where we are trying to find a way through this, of course a work in progress...therefore the idea of requesting the statement - not sure if it is a good or a bad idea...but cannot see an easier way through for now.
Posted Tue, 09 Jan 2024 13:42:04 GMT by Customs oldtimer
If Ryanair are not the importer and haven’t provided you with authority to act as their representative then I hope they are not mentioned on the import declaration. It sounds like you are acting as indirect representative for Boeing USA who are importing their own goods. If that’s the case then there cannot be a sale as a company cannot sell to itself and Boeing can provide the valuation information as importer. The USA uses the same sort of valuation rules as the UK so should understand the different methods.
Posted Wed, 10 Jan 2024 17:30:08 GMT by HMRC Admin 20
Hi Dumitru Mihalca,
Guidance on Valuation Method 1 advises to use the seller’s invoice or whatever document they use to ask for payment as evidence, providing that:
•    there can be no doubt about the document’s authenticity
•    it carries enough information to show that the transaction value declared is the total amount paid or payable
Please see below link for more information.
Valuing imported goods using Method 1 (transaction value) Providing evidence of the price paid or payable
Thank you.

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