Freya Jane
The UK government has launched a new service called Advanced Valuation Rulings (AVRS) that enables businesses to obtain legally binding decisions from customs authorities on which valuation method to use when submitting a customs declaration.
This new service is part of the government’s plan to create a modern, digital customs service that makes it easier for businesses to import goods into the UK.
Advanced Valuation Rulings are official decisions or interpretations about the import or export value of items rendered by tax or customs authorities. These decisions offer direction on how to assess a good’s value for customs purposes, particularly when traditional methods of valuation might not be applicable. They seek to provide clarity and consistency in assessing the value of items for taxation and customs duties, frequently dealing with complex or unique cases that necessitate particular assessment standards.
If a business is unsure of which valuation method to use or wants a legally backed decision on a particular method, it can apply for an AVRS ruling. It is not mandatory to apply for an advanced ruling, but it can reduce the administrative burden and provide certainty on the cost of importing goods.
According to HM Revenue and Customs (HMRC), which will administer the new service, it could take up to 90 days to issue a ruling once an application is submitted. Rulings will apply for three years unless they are withdrawn or cancelled.
AVRS complements existing legally binding decision services such as Advance Tariff Rulings, Advance Origin Rulings, Binding Tariff Rulings, and Binding Origin Rulings. These services provide legal certainty on the correct commodity code, economic nationality, and commodity code for importing into the EU or Northern Ireland.
The launch of AVRS brings the UK in line with other countries, including some Free Trade Agreement partner countries, that already offer such a service. The new service will benefit hundreds of thousands of UK traders by stripping away uncertainty and reducing the administrative burden, according to Aidan Reilly, HMRC’s Director of Customs Policy and Strategy.
You can apply if you are:
Before you start the application
You must apply before you import your goods or make any import declarations, as decisions cannot be made retrospectively.
To apply, you will need the following:
When you apply, you will also need to give us supporting documents relevant to the goods being imported, such as:
HMRC may refuse your application if you are not planning to import your goods or do not give them all the information they need.
Parts of your application may be made public — this may include attachments that are not marked as confidential. If you want information on your application to remain confidential, you must let HMRC know when attaching these documents.
Advanced Valuation Rulings are critical guides for firms negotiating the complexity of import/export value. Businesses can guarantee compliance and expedite procedures by formally requesting clarification from customs or tax authorities, particularly in situations when traditional assessment techniques are ineffective.
These decisions provide a transparent process for figuring out customs values, which helps businesses with their global trade activities while preserving regulatory compliance and valuation procedures’ stability. Preparation to optimise your import/export operations? Connect with iCustoms to experience our Advanced Valuation Ruling services and receive professional advice on it. Boost the accuracy of your customs valuation right now!
Reach out to the iCustoms team to enquire more at info@icustoms.ai
