• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/12/2014

EU - “Earlier sales for export” versus “last sale” proposal 

March 12: The EC Taxation and Customs Union Directorate-General currently is in the process of drafting a new implementing act for the Union Customs Code (UCC).

The UCC implementing act (according to a draft circulated in mid-January 2014) would eliminate the current possibility of using “earlier sales for export” as a basis for valuing goods that are sold through complex supply chains, and would require internal EU sales to serve as the basis for customs valuation of imported goods under a “last sale” principle.

The draft UCC implementing act would further expand the amount of royalties and license fees subject to customs duties as a result of an interpretation of the “condition of sale” requirement triggering inclusion of such fees in the dutiable customs value.

A group of associations representing industry and trade communities in early March 2014 issued a “joint statement of concern,” urging that the EU rules retain the possibility of using the “earlier sale for export” principle, including for goods sold from a bonded warehouse or en route to the EU, and to preserve the current “condition of sale” requirement for imposing customs duties on royalties and license fees.

Contact a KPMG Trade & Customs professional for an electronic version of the joint statement of concern.

Douglas Zuvich

(312) 665-1022

Andrew Siciliano

(631) 425-6057

John L. McLoughlin

(267) 256-2614

Todd R. Smith

(949) 885-5617

Luis A. Abad

(212) 954-3094

Amie Ahanchian

(202) 533-3247

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