The German Federal Fiscal Court (dt. Bundesfinanzhof, BFH) has recently provided more clarity on the issue of transport costs for goods that have been outward processed.

The Federal Fiscal Court provides clarity on transport costs in the case of outward processing in third countries. (Image source: Pixabay)

In principle, the regulation according to Art. 71 (1) (e) UZK (Union Customs Code) applies. There it is stated that for imported goods transport and insurance costs can be added to the price. But does the regulation also apply when goods are transported to a third country for processing and back into the customs territory? The BFH dealt with this question in a revision procedure.

The background was Article 86 (5) of the UCCC, which states:

“Where a customs debt is incurred in respect of compensating or replacement products obtained under the outward processing procedure in accordance with Article 261(1), the amount of import duty shall be assessed on the basis of the cost of the processing operation carried out outside the customs territory of the Union.”

The BFH’s ruling: the other customs valuation regulations would not be superseded by Article 86 (5) of the IPC. It justifies this with the systematic position of the customs valuation regulations in the UZK, which leads to the fact that they are applicable to all import duties. Particularly since transport costs are incurred in the same way for import goods and for compensating products. This means that transport costs can also be added in the case of processing in third countries.

Source: Möllenhoff Lawyers