Customs commodity cost

The customs commodity cost under various delivery conditions is the value of the goods assessed for the purpose to calculate customs charges.

The customs cost of the imported goods is their transaction value, i.e. the cost actually paid or due and payable for these goods, supplemented by the following values (if any and not included in the price paid):

1. Expenses in the amount incurred or subject to be undertaken by the Buyer, but not included in the price, actually paid or payable for the imported goods:

• Agency fees for the purchase of imported goods;
• Costs of packaging, in case, for customs purposes it is considered as a whole with imported goods;
• Packing expenses, including the cost of packing materials and operations.

2. The cost of goods and services in the amount not included in the price, but actually paid or payable for the imported goods:

•  Raw materials, supplies, parts, semi-finished goods and similar items that make up the imported goods;
• Tools, stamps, forms and similar items, used when producing the imported goods;
• Materials, consumed when producing the imported goods;
• Design, development, engineering, decorating, sketches and drawings made outside the CU uniform customs territory and necessary to produce the imported goods.

3. A part of the revenue earned (income) directly or indirectly due to the Seller.
4. Expenses for the carriage (transportation) of the goods to the airport, seaport or other place of the goods arrival into the CU customs territory.
5. Expenses for loading, unloading or reshipping of the goods and other operations related to their carriage (transportation) to the airport, seaport or other place of the goods arrival into the CU customs territory.
6. Insurance expenses.
7. License and other similar fees (including payments for patents, trademarks, copyrights) related to the imported goods and made by the Buyer as a condition of sale of the imported goods in the amount not included in the price, but actually paid or payable for these goods.

Additional charges to the price actually paid or payable for the imported goods are made on the basis of reliable, quantifiable and documented information. In the absence of such information, necessary for additional charges, the method of the transaction value of the imported goods is no applied.

Under the export of goods, the customs value is equal to the invoice value of the goods.

Under the import of the goods, the customs value may be less, more than or equal to the invoice value of the goods, depending on the terms of the delivery according to INCOTERMS.

International Trade Rules permits to use any revision of INCOTERMS.

According to INCOTERMS 2000/2010 all delivery terms may be divided into 4 categories:

For delivery terms of Categories Е and F, geographical point (port) of DEPARTURE is indicated.

For delivery terms of Categories С and D, geographical point (port) of DESTINATION is indicated.

For instance, for goods exporting from St. Petersburg, ex-works, it shall be indicated EXW Saint-Petersburg, not EXW Kirov Plant. For goods importing from BMW, it shall be indicated, EXW Munich, not EXW BMW.

The same applied to all delivery terms. In case of “sea” terms of delivery (FAS, FOB, CFR, CIF, DES, DEQ), it is necessary to indicate port, not geographical destination.

It is unacceptable to indicate the name of the country instead of the geographical destination (port). For instance, it is correct to indicate FCA Warsaw, not FCA Poland.

When importing goods on terms of delivery, stated for categories E and F, at least the freight cost to the CU customs border and the cost of the cargo insurance shall be added to the invoice value of the goods. The cargo insurance is mandatory only for CIP and CIF delivery terms, which is conditional upon the provision of the insurance certificate. For other delivery terms, it is necessary to provide a letter from a Receiver on the absence of voluntary cargo insurance. Also, to determine the customs commodity cost, other costs, specified by the Contract (for instance, obtaining permits, other services, borne by the Importer) may be added.

When importing goods on terms of delivery, stated for categories C and D, the transportation cost from the CU customs border to the place of destination within the RF is dedicated from the invoice value of the goods. To perform this deduction, a calculation of the transportation cost is provided for the periods BEFORE and AFTER the crossing of the customs border, or these values are indicated separately in primary accounting documents to pay for the goods transportation.