Prolab Nutrition Europe (TC00269): the customs value of goods for import duties includes any royalties and licence fees paid as a condition of sale (Article 29(1)/Article 32(1) of Council Regulation 2913/92 (the Community Customs Code). The court held that payments for exclusive distribution rights are not royalties or licence fees for the purposes of determining customs value.
In this case, the payments for exclusive distribution rights were to be taken into account in determining the customs value, but only because they fell within Article 29(3)(a) as being part of the total price paid for the goods in question. If the payments had not been within Article 29(3)(a), they would not have been taken into account in determining the customs value because they were not royalties or licence fees.
--
Related posts:
- UK: Changes to IP Customs Procedures
- UK: licence fees for inventor = trading income, not employment income
- Indonesia: Leasing bandwidth – business profit or royalties?
- India: clear as …?
- India: royalties – oh no, they aren’t; oh yes, they are
Tags: customs duties, EU, uk