Measure

Introduction of Customs Advance Valuation Rulings

The measure

The government will legislate to provide the means to introduce Customers Advance Valuation Rulings. 

 

Who will be affected?

UK Importers. 

 

When will the measure come into effect?

The government will legislate this in the Spring Finance Bill 2023 and it will have effect on or after the date of Royal Asset. Once provided, the ruling will be legally binding on both HMRC and the customer for three years.

Our view

Advance Valuation Rulings are written decisions made by customs authorities at the request of a trader that are legally binding on both parties.

 

Application for an Advanced Valuation Ruling is not mandatory, but they can provide traders with certainty when determining the customs value of goods being imported into the UK (albeit it is not clear at this stage whether they will be binding on NI traders) and can form a key part of evidence in justifying the historic use of a customs valuation methodology. This can be especially important in scenarios where the customs value of goods is not straightforward to determine, for example goods imported into the UK under a chain of sales.

 

Similar mechanisms have been available in the UK to support classification and origin determination and within other customs territories for some time.