What is customs valuation?
The value of goods for customs purposes is the transaction value, i.e. the actually paid or payable price for the particular goods when sold for export to the customs territory of BiH, and when necessary in accordance, with Art 29 and 30 of the Law on Customs Policy BiH and under conditions as per Art. 26 of the said Law.
Laws and Regulation
The procedure of determining customs value is regulated by the provisions of the Law on Customs Policy of BiH (the Law, in local language) ("Official Gazette BiH", No. 57/04, 51/06, 93/08 and 54/10) and Decision on Implementing Regulations of the Law on Customs Policy of BiH (the Decision in local language) ("Official Gazette BiH", No. 63a/04, 60/06, 57/08).
The methods of determining customs value for goods imported into BiH and which are contained in the Law are taken from the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade – GATT 1994.
Determination of customs base
The methods of determining customs value are regulated by Articles 26-28 of the Law on Customs Policy of BiH.
The primary method is to use the transaction value and it is included in Article 26 of this Law. This article shall be interpreted jointly with Articles 29 and 30 of the Law, which specify the costs that are included i.e. not included in customs value.
The transaction value shall represent the actually paid or payable value i.e. the entire amount paid by the purchaser to the seller for goods at sales for export to BiH. When the customs value cannot be determined according to Article 26 it will be determined according to Article 27 of the Law, i.e. based on the transaction value of the identical (Article 27 under a) and transaction value of similar goods (Article 27 under b); which is sold for exports to BiH and exported in the same or approximately at the same time as the goods whose value is being determined. In the sense of this article the transaction value of identical and similar goods means customs value previously determined in accordance with Article 26 of the Law and harmonised as prescribed by paragraphs 1 and 2 of Article 70 of the aforementioned Decision.
When the customs value of imported goods cannot be determined by the aforementioned methods, it shall be determined pursuant to Article 27 under c) i.e. based on the value based on unit price per which the imported goods for identical or similar imported is sold in BiH in the condition it is imported in, in highest total quantity at the same or approximately at the same time as the goods whose value is being determined, to persons unrelated to the sellers. The commissions shall be deducted, those usually paid or whose payment is agreed (including direct and indirect advertising costs) related to the sales in BiH, usual transportation costs and insurance occurring in BiH, import and other duties, payable in BiH for the purpose of import or sales of goods.
The following prescribed method of determining customs value is accrual value (Article 27 under d) which consists of the sum of price or value of the material and processing or other working included in the production of imported goods. When applying this Article of the Law the customs bodies cannot request or make person without residence in BiH to provide for examination or allow the access to any business books or other records for the purpose of determining this value. However, the data provided by producer of goods for the purpose of determining customs value, customs bodies of BiH can check in some other country with consent of the producer and conditioned that customs bodies of BiH timely and in advance inform the bodies of the country in question and that they do not object to the investigation (Article 72 of the Decision).
Since, in application of both these methods from Article 27 c) and d) certain difficulties occur, which is why these are rarely applied, the importer holds the right to choose the sequence of their application.
Should the customs value of imported goods cannot be determined in accordance with Article 26 and 27 of this Law, it shall be determined pursuant to Article 28 based on data available in BiH by using acceptable means which are in accordance with the principles and general provisions:
a) Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade from 1994;
For determining customs value by this method the determined values can be used when obtained through any method with reasonable flexibility. No customs value can be determined based on:
a) sales price in BiH for goods produced in BiH;
According to the provisions of the Law and, as well, the Agreement on Implementation of Article VII of the GATT 1994 the burden of proof of actually paid or payable price is on the importer and no provision of that Law and Agreement cannot be interpreted in such manner that it limits or questions the right of customs service to verify the validity or accuracy of any document, statement or declaration filed for the purpose of customs valuation.
Ministry of foreign trade and economic relations BiH