How UK customs value works

Start with the transaction value

Customs value is a valuation under customs rules, not simply the number printed at the bottom of an invoice. A transaction-value approach starts with the relevant price paid or payable and considers adjustments. It is not available for every movement.

What changes the customs value

Build an evidence trail before building a number. A shipment with free samples, related parties, tooling or later payments needs more thought than a purchase with one agreed price. Do not assign a token value simply because no cash changes hands.

Evidence to gather

• The relevant sale invoice and purchase agreement.
• A breakdown of transport, insurance and other charges.
• Details of tooling, materials, royalties or proceeds connected with the transaction.
• Evidence supporting any proposed deduction or discount.

Build the value

Confirm whether the proposed valuation method fits the transaction. In the workbench, enter the base price once. For each adjustment, choose whether it is already included, an addition, an eligible deduction or unresolved. An unresolved selection is not silently treated as a legal exclusion. Keep the evidence beside the calculation.

Worked value

Where errors creep in

• Adding delivered freight twice.
• Using a commercial costing exchange rate without checking the customs conversion basis.
• Treating every commission or royalty identically.
• Applying Method 1 to a movement without a qualifying sale.

Final checks

Confirm the valuation method, the relevant sale, the evidence for adjustments and any relationship affecting the price. Customs value and import VAT value are separate stages. The workbench organises your calculation; it does not decide legal eligibility.