Royalties and licence fees
Also called: royalty addition
Payments for the use of trademarks, patents, designs or know-how that relate to imported goods and are paid as a condition of their sale. Under valuation rules they are added to the price when calculating customs value, even if paid separately or to a third party.
In practice
Royalties are among the most common audit findings, because they are often paid by a different department and never reach the customs declaration.
EU
Türkiye
USA
UKRelated terms
- Customs value
- The value of imported goods on which ad valorem duties are calculated. Almost all countries follow the WTO Customs Valuation Agreement, under which…
- Transaction value
- The price actually paid or payable for goods when sold for export to the importing country, adjusted for items such as commissions, packing, assists,…
- Assists
- Goods or services supplied free or at reduced cost by the buyer for use in producing the imported goods, such as moulds, tools, components or…