The European Commission has adopted a new regulation that will introduce binding customs value information (BVI) decisions for traders and customs authorities in the EU. BVI decisions will provide clarity and consistency on how to determine the customs value of imported or exported goods, which affects the amount of customs duties and other charges payable at the EU border. The regulation also updates the existing rules on binding tariff information (BTI) and binding origin information (BOI), which define the classification and origin of goods for customs purposes.
The regulation will only apply from 1 December 2027, when the electronic system for managing BVI, BTI and BOI decisions is expected to be ready. The regulation is based on the Union Customs Code, which sets the general framework for customs legislation in the EU.
The introduction of BVI decisions is expected to increase transparency and compliance with the legislative requirements.
How will it work?
In simple terms, the process will be as follows:
- The binding information should be requested by economic operators.
- The customs authorities make a decision on which customs valuation information shall be binding, providing the appropriate method of customs valuation or criteria, and the application thereof, to be used for determining the customs value of goods under particular circumstances. The decision should be reviewed and approved by the customs authorities within seven days at the latest. If the decision is not as desired or is revoked, there is the possibility of an appeal to obtain legal clarification.
- The binding information issued must be indicated in the customs declaration at the moment of import, and must state the corresponding reference number, which relates to the respective goods declared. For the application of a BVI decision in the context of a particular customs procedure, the holder of the decision must be able to prove that the goods in question and the circumstances determining the customs value correspond in every respect to the circumstances described in the decision.
- In order to ensure consistency among different types of binding information, the envisaged legal and operational framework for the BVI decisions is modelled on relevant aspects of the existing BTI and BOI decisions (period of validity of three years throughout the EU, binding for both the holder of the decision and the customs authorities, possibility of suspending a decision due to incorrect information, etc.).
What are the benefits?
The introduction of binding customs value information would bring about a slew of benefits for businesses:
- It would enable entrepreneurs to request binding information from the customs administration before the actual import. In this way, possible errors can be prevented in advance. This is particularly advantageous in the event that companies have different licencing arrangements or recurring imports, especially for all transactions between affiliated parties (intercompany transactions) which are subject to more rigorous controls from the customs authorities.
- It is valid throughout the entire customs territory of the European Union, and must therefore be recognized by every Member State. This can also lead to faster customs clearance, because the customs authorities will generally not doubt the customs value on the basis of binding customs value information.
Get in touch
Requesting binding information can be a time-consuming and complicated process. Your customs and VAT experts at PwC Switzerland are happy to support you in making your internal customs documentation more legally secure. Contact us today to find out more about how we can help you navigate the new EU regulation on binding customs value information.
