The UK has introduced Advanced Valuation Rulings (AVRS), a new service designed to streamline the customs valuation process for businesses. If you're involved in importing goods, understanding how AVRS can impact your workflow is crucial.

What is AVRS?

Advanced Valuation Rulings (AVRS) provide a legally binding decision from customs authorities on the valuation method to use for your imports. This service is essential when standard valuation methods are complex or ambiguous.

Valuation Methods

Here’s a quick rundown of the six methods to determine customs value:

• Transaction Value Method: Value based on the price actually paid or payable for the goods.
• Value of Identical Goods: Value based on the price of identical goods sold for export to the UK.
• Value of Similar Goods: Value based on the price of similar goods sold for export to the UK.
• Deductive Method: Value based on the selling price of the goods in the UK after importation.
• Computed Method: Value based on the cost of production, including profit and general expenses.
• Fall-back Method: Value based on reasonable methods consistent with the principles of the other methods.

If you're unsure which method to apply, an AVRS ruling provides legal certainty and can streamline your import process.

How to Apply

To apply for an AVRS, you’ll need:

• A chosen valuation method
• Government Gateway user ID and password
• EORI number starting with GB

Also, prepare supporting documents like commercial invoices, purchase orders, and any relevant agreements. Note that you must apply before importing goods, and it could take up to 90 days to receive a ruling.

Benefits

Legal Certainty: Gain a definitive answer on the valuation method.
Administrative Efficiency: Reduce the paperwork and guesswork.
Consistency: Ensure uniform valuation across shipments.

Related Services

AVRS complements other binding services, such as:

• Advance Tariff Rulings: For accurate commodity codes.
• Binding Origin Rulings: For confirming the economic nationality of goods.

Who Can Apply?

• Traders with a GB EORI number
• Agents representing traders

Key Considerations

• Cost vs. Benefit: Weigh the application fee and effort against potential savings.
• Product Complexity: AVRS is particularly useful for high-value or complex goods.
• Alternatives: Check if other services like Binding Origin Information could be equally effective.

Bottom Line

Advanced Valuation Rulings can be a game-changer for managing customs valuation efficiently and accurately. This tool helps you stay compliant and reduces the complexity involved in importing goods.