Customs value is the declared monetary worth of imported goods, normally the transaction price actually paid or payable plus specified costs such as freight and insurance to the EU border, used as the basis for calculating import duties.
In trade practice
Exporters and their brokers declare customs value on the customs declaration using the transaction value method set out in the EU Customs Code, supported by the commercial invoice, freight invoice and insurance certificate. Buyers and suppliers must ensure all documents show consistent figures, as discrepancies between the invoice and the declaration are a common trigger for audit. Deliberate undervaluation is treated as fraud and can result in retrospective duty demands, penalties and seizure of goods.
In a specification
Purchase contracts typically state the Incoterms rule and price basis so that both parties can correctly calculate the customs value, including which costs must be added to reach the EU border point.