There are a number of Methods for establishing the value on which customs duty and import VAT is calculated. The six basic methods are (and other than Methods 4 and 5 they should be tried in the order indicated):
Method One: It is called the “transaction value”. It is the normal method of valuation which applies to over 90% of importations liable to ad valorem customs duty.
Method Two: It is based on the customs value of identical goods exported to the EC at or about the same time as the goods to be valued.
Method Three: It is based on the customs value of similar goods exported to the EC at or about the same time as the goods to be valued.
Method Four: It is based on the selling price of the goods in the EC. Unusually you can try Method 5 before Method 4 if you wish.
Method Five: It is based on the costs of production of the goods. Usually it can only be used where the importer and supplier are related (see method 4 above).
Method Six: Method 6 is called the fall back method and is a composite means of achieving value when no other method is applicable.
Within these methods there are numerous (often complicated) valuation techniques that can reduce your duty bill. These include:
unbundling non-dutiable elements of the price
use of first/prior sale price
removing of quota/warranty/finance costs
discounts – supplier discounts, early payment, volume, quality