Some issues of application of the reserve method of determination customs value of goods (Method 6)

Some issues of application of the reserve method of determination customs value of goods (Method 6)

Determination of the customs value of goods imported into the customs territory of the EEU is regulated by Chapter 5 of the Customs Code of the EEU and Chapter 6 of the Code of the Republic of Kazakhstan "On Customs Regulation in the Republic of Kazakhstan".

The determination of the customs value of goods is made by the consistent application of methods for determining the customs value of goods.

If the customs value of imported goods cannot be determined by the transaction price of imported goods (Method 1), by the transaction price of identical/similar goods (Methods 2/3), by the subtraction method (Method 4), by the addition method (Method 5), the customs value of the goods is determined by the reserve method (Method 6).

The Rules for applying the reserve method in determining the customs value of goods (Rules) were approved by the Decision of the Eurasian Economic Commission No. 138 of August 06, 2019.

Determination of the customs value by the reserve method is based on the same methods as when determining the customs value of goods at the transaction price of imported goods (Method 1), at the transaction price of identical / similar goods (Methods 2/3), by the subtraction method (Method 4), by the addition method (Method 5), with the assumption of flexibility in their application.

The customs value of imported goods, when determined by Method 6, should not be based on the following parameters:

- prices in the domestic economy of the EEU for goods produced in the customs territory of the EEU;

- accepting the higher value of the two alternative values;

-  home prices of the country of exportation;

- other  expenses  included in the estimated value that was determined for identical / similar goods according to Method 5;

- prices of goods delivered from the country of their export to non-EEU member states;

- the minimum customs value of goods;

- arbitrary or fictitious value of goods.