When you import goods from abroad, customs duty and VAT are generally calculated based on the customs value of the goods. When calculating VAT, the customs duty and other taxes incurred by importing the goods are included in the basis for calculation.
There are six ways to determine the customs value. However, you cannot choose freely among these. The rule of thumb is that the customs value is determined on the basis of the transaction value of the goods. The transaction value is the price actually paid or payable for the goods when sold for export to Norway, adjusted in accordance with §§ 7-17 and 7-18 of the Norwegian Customs Act.
If you cannot determine the customs value based on the transaction value, you must use one of the alternative methods set out in §§ 7-11 et seq of the Norwegian Customs Act. These methods must be tested one by one in the order listed. This determines the customs value based on:
- the transaction value of identical or similar goods (§§ 7-11 and 7-12)
- the selling price for identical or similar goods (§ 7-14)
- the calculated customs value based on, for example, production and transport costs (§ 7-15)
- an alternative customs value based on the principles in the preceding provisions (§ 7-16)
Exchange rate – § 7-19 of the Norwegian Customs Act
If when determining the customs value it is necessary to convert a foreign currency to Norwegian kroner, Norwegian Customs’ exchange rates must be used.
Deferred final valuation – § 7-20 of the Norwegian Customs Act
This may be appropriate in cases where it is difficult to determine the basis at the point of clearance.
If the determination of the customs value is deferred, the importer will be able to retrieve the goods from the customs authorities if adequate security for duties and taxes is paid.