Customs Administration, Ministry of Finance announced that if importers have questions about which expenses should be added into the calculation of customs value of imported goods at the time of declaration, they may apply to Customs for an advance ruling on customs valuation. This can avoid recoverable duties or customs value investigations due to undeclared related expenses, thereby preventing the clearance of imported goods.

Customs Administration explained that according to Article 29 of the Customs Act, the customs value of imported goods is determined and calculated on the basis of the transaction value. The term “transaction value” refers to the price actually paid or payable for the imported goods sold from the exporting country to Taiwan. That is, the total amount actually paid or payable by the buyer to the seller or their agent for the imported goods shall serve as the basis for calculation. Therefore, expenses such as commissions, brokerage, design fees, and royalties must be included in the customs value. If Customs discovers any underreporting of these expenses that should have been added to the customs value, it will impose the recoverable duty. If importers have questions about which expenses should be included in the customs value of imported goods, they may apply to Customs for an advance ruling on customs valuation before the goods are imported. To apply, the importer must complete the application form for advance ruling and submit the required supporting documents. The result of an advance ruling shall be valid for three years.

Customs Administration stressed that applying for an advance ruling on customs valuation not only reduces disputes between importers and Customs, but also allows importers to better estimate operating costs, minimize administrative appeal cases, and expedite customs clearance. Importers are encouraged to make full use of this service. 
If you have any questions, please feel free to contact Customs Administration for more information.

Tel: (02)25505500 ext. 2703