EU Customs Valuation:Wake-Up Call for MNE

Worldwide customs valuation rules have developed from a concept of objective market value to the current concept of transaction value. Whereas a
focus on the price actually paid or payable for the goods has become the norm in a corporate in-house customs setting, at the same time financial,
commercial, and operational considerations at multinational enterprises (MNE) have become a normal part of EU customs valuation and vice versa.
MNE should, therefore, pay close attention to whether their customs valuation processes with respect to (non)related party transactions that cross the
outer EU borders are compliant. In this regard, the treatment of royalties and assists is probably the most complex area of customs valuation law,
resulting in underpayments or overpayments of customs duties by MNE. This article provides guidance on EU customs valuation, with a particular
focus on royalties and assists.

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Global Trade and Customs Journal