2025-09-02
The CJEU had considered whether, when the price of imported goods differs from that declared at customs clearance, the transaction value method — based on the actual price of the imported goods — should apply, and whether an adjustment of the customs value is necessary.
According to the background of this case, the parties set provisional prices in their contract, then subsequently made adjustments. The final price could have been either higher or lower than the provisional price. The contract clearly outlined the factors relating to the adjustment, but neither party had any influence on these factors. In the course of the customs clearance process, the only available information was the provisional price; therefore, this price was used to determine the customs value.
The CJEU stated that the customs value of imported goods is primary the transaction value, while the secondary methods are only applicable where the customs value cannot be determined with the transaction value method. Under the transaction value method, the price actually paid or the price payable for the goods should be considered when determining the customs value.
The CJEU has emphasized that the final price of the products in question can be determined at the time of contract conclusion, since the relevant factors for determining the final price have been outlined by the parties. In such cases, the transaction value method is to be applied.
At the time of import, a simplified customs declaration may be submitted, and the customs value indicated on the customs declaration may correspond to the provisional price stated on the pro forma invoice. Once the final price indicated on the final invoice has been established, a supplementary declaration may be submitted.
This recent CJEU judgment provides further clarification on the interpretation of EU law when determining customs value.
The CJEU has previously addressed the issue of customs value adjustments in case C-529/16 (Hamamatsu). However, the Court did not consider that subsequent price adjustments resulting from the allocation of profits based on decisions made by the parent company between related companies are acceptable.
According to the judgment in the Tauritus case, subsequent price adjustments under certain conditions might affect the customs value. While the background of this case involved a transaction between independent parties, the CJEU’s ruling may also have an impact on the consideration of transfer pricing adjustments when determining the customs value.
KPMG’s tax and customs advisory team is available to assess the impact of retroactive price adjustments on customs value and to assist you in discussions with customs authorities.
