Customs valuation: WCO TCCV 52nd session: Adoption of two new advisory opinions

The Technical Committee on Customs Valuation (TCCV) of the World Customs Organization (WCO) examines technical issues arising from the management of Customs valuation systems and publishes opinions providing appropriate solutions to the cases submitted. The TCCV is able to adopt various instruments including Advisory Opinions.

At the 52nd session, which took place from 17 to 19 May 2021, the TCCV finalized two new instruments:

  • Advisory Opinion 24.1 on the valuation treatment of imported goods bearing the buyer’s own trademark: this instrument relates to the valuation treatment of the trademark belonging to the buyer and provided free of charge to the seller for use in connection with the production of the imported goods. According to the TCCV, this circumstance is not by itself one that can lead to the rejection of the transaction value method.
  • Advisory Opinion 4.18 on Royalties and license fees under Article 8.1 (c) of the Agreement: the TCCV gives its opinion on the valuation treatment of the withholding tax deriving from the net royalty paid to the country of importation’s tax authorities in accordance with the terms of the license agreement signed by the importer and the seller, who is also the license holder. The opinion provides the rationale and calculation methodology in order to reintegrate this tax into the value of the goods subject to the license.

DS Avocats is an active member of the ICC delegation which attends TCCV sessions as an observer. The content of these Advisory Opinions will be published at a later date, once they have been approved by the WCO Council but we can yet comment and help grasp the impact of new guidance.

DS Avocats International Trade and Customs team is at your disposal to provide you with any additional information.