Advance Valuation Rulings Guide for Importers

Advance valuation rulings

Information about advance valuation rulings

What an advance valuation ruling is

When goods are imported into the UK, the correct method must be used to work out the customs value of the goods.

Advance valuation rulings (AVRs) are written decisions made by customs authorities at the request of an importer that are legally binding on both parties. An AVR application must be made before the import of goods or prior to any import declarations, as decisions cannot be made retrospectively. AVRs are legally binding on the customer and HMRC for the specified goods and scenario for a period of three years, subject to cancellation or a withdrawal of the ruling.

AVRs expire after 3 years and do not renew automatically. It is the importer’s responsibility to reapply for an AVR, if they wish to have one in place beyond the expiration date. Ideally the importer should apply for a replacement AVR 3 months before the expiration of the existing ruling. This can be done by applying for an advance valuation ruling and attaching all necessary documentation. HMRC will endeavour to issue a new AVR before the existing ruling expires.

An AVR is not mandatory, and goods can still be imported into the UK without one, however, having one assists importers in the completion of customs declarations and provides certainty to importers on the method to use to value their goods. This, in turn, helps ensure that the correct duty is paid on imported goods.

Section 24 TCTA provides the means for HMRC to offer AVRs.

Who can apply

An importer using their own EORI number starting GB or an agent acting on behalf of an importer with a business tax account.

Advance valuation ruling application requirements

An application for an AVR should include a complete statement of all relevant facts relating to the transactions, including but not limited to:

• the name and business address of the importer
• proposed method of valuation
• specific information depending on the proposed method of valuation, if acceptable, such as; any relationship between the parties, conditions or restrictions of sale, reasons as to why other methods have been discounted
• evidence that supports the proposed method of valuation, should be submitted with the application - for example, invoices, contracts, agreements, or other documents - any information to be treated as confidential should be marked on the application
• confirmation that the goods for import are not subject to any legal challenges
• any other information relevant to determine the method of valuation

Issue of advance valuation rulings

On receipt of the application for an AVR, HMRC will:

• notify the importer that the request has been received
• ask the importer to supply additional information where HMRC considers that the application does not contain all the information required to issue an AVR The importer can withdraw their application at any time before the issue of the ruling by HMRC.

HMRC will issue an AVR no later than 90 days after the acceptance of the application. Applications are accepted once all necessary information has been submitted.

AVRs will be issued in writing to the importer. The ruling will include details of the goods, confirmation of the valuation method, detailing the reasoning for the decision, ruling start and end date, a notification of right of review and appeal.

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