155991GATT PRICE SYSTEM

155991

GATT PRICE SYSTEM

GATT PRICE SYSTEM

In the case of imports, it means the price of goods for the purpose of collecting duties. Currently, Thailand uses customs prices known as “GATT Valuation System” of the World Trade Organization (WTO) to determine the price of incoming goods. This is in compliance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994.

Based on the purchase price of imported goods which is the price the buyer pays or actually payable to foreign sellers, however, the purchase price of the imported will be subject to certain conditions, such as purchases, buyers and sellers must not have a relationship or that trading must not have any other conditions.

How to set customs prices
Customs pricing according to GATT’s principle is determined by 6 methods as follows:

Method 1: Transaction value refers to the purchase price that the purchaser actually pays or pays to the seller abroad for the imported goods. in which the price has been adjusted or the value or other expenses have been included, such as the cost of supplementary materials, commission fees or royalties, etc.

Method 2: Transaction value of Identical Goods refers to the purchase price of goods that are identical in all respects to imported goods. whether it is physical, quality and reputation, and must be produced in the same country as the imported product, taking into account the insurance cost. Freight costs of goods imported to the customs house, the cost of unloading, loading and unloading, and various handling charges. related to the transport of goods to the customs house where the goods are brought in

Method 3: Transaction value of Similar Goods refers to the purchase price of goods that are not all the same as those that are imported. but have the same characteristics or use of materials Made in the same country and perform the same or interchangeable functions in trade, taking into account the quality, reputation and trademarks of the goods imported with them.

Method 4: Deductive Value refers to the price that is determined using the trading price per unit of the imported goods. or the selling price per unit of identical or similar articles sold in Thailand By deducting some expenses, such as commissions or profits and expenses. Transportation and insurance costs incurred in the Kingdom Taxes and duties in Thailand The added value of the product arising from the assembly or further processing

Method 5: Computed Value means the price determined from the production cost of the imported goods. Plus profits and general expenses normally included in sales from exporting countries to Thailand. including the cost of containers, insurance and transportation costs.

Method 6: Fall Back Value means setting the price by applying the rules. Pricing methods and conditions in accordance with Methods 1-5 are used with lenient for reasonable pricing.

Customs price determination shall be determined in accordance with Method 1, Method 2 and Method 3 respectively. The customs price shall be determined in accordance with Method 4, or when it is not possible to determine as in Method 4, the customs price shall be determined in accordance with Method 5 and Method 6 respectively. However, the importer can request the Customs Department to reverse the order of using Method 5 and Method 4, if the duty assessment agency approves the request of the importer

Determination of customs prices according to method 1, the purchase price of imported goods (Transaction value).

Determination of customs prices in accordance with Method 1, the purchase price of imported goods shall be the price actually paid or payable for the imported goods when they are sold for export to the Kingdom. The price must be adjusted according to the following rules:

Expenses or income that must be included in the purchase price of the imported goods.

– Royalties and license fees associated with imported goods whether directly or indirectly as a condition of sale
– the income that the seller receives from the use of the imported goods by the buyer; or resell, whether directly or indirectly
– Insurance, transportation costs of goods imported to the port or place of importation, unloading costs, loading and unloading costs, and other handling costs. in connection with the transport of goods imported to the port or place of importation
– Expenses or value borne by the buyer according to the following items:
– fees or gratuities for agents and brokers It does not include any fees or agent fees due to purchases.
— the cost of containers as part of the goods imported for the purpose of taxation
— Material and labor costs for packing imported goods
– the value of the material Equipment or services for use in the production and sale of imported goods whether directly or indirectly supplied by the purchaser as follows:
— materials, components, parts or the like included in the imported
— Tools, dies, molds or the like. used in the production of imported
— Consumable materials used in the production of imported goods
— Provision of engineering, development, artwork, designs, drawings and sketches performed outside the Kingdom and necessary for the production of imported goods.

Expenses that must be deducted from the purchase price of imported goods in determining the customs price according to method 1.
– Expenses for construction, installation, assembly, maintenance or technical assistance incurred after the importation of such goods.
– Shipping costs after successful importation
– Duties and taxes due to import

the cost, income, or value of the material equipment or service to be included in the purchase price of imported goods and expenses that will be deducted from the purchase price of the imported It must be based on factual information and computational value only.

The purchase price of imported goods used for customs pricing shall be subject to the following conditions:

The purchaser shall not be restricted in the sale or use of the item. unless it is a limitation that

– established by the provisions of law or by government officials, such as prohibiting the sale of goods to minors Please check or test before using. or to have a lot of packages as prescribed, etc.
– It is forbidden for the imported goods to be resold in certain places or areas, for example, the seller prescribes that the buyer to sell such goods only in the Bangkok metropolitan area.
– does not have a significant impact on the price of imported goods, for example, in the event that the seller prohibits the buyer from showing or selling the car before the start date of the model year of the car

The sale or sale price must not be subject to certain conditions or consideration that cannot be determined as value, for example, the buyer must purchase something else from the seller for the specified amount. The buyer must also sell something else to the seller.
The seller must not receive any income from the purchaser’s subsequent use or resale of the goods. whether directly or indirectly except in the case that may be included in the price according to item 1.

The buyer must not have a relationship with the seller. unless such relationship does not affect the purchase price of the imported goods.
The interpersonal relationship in the following cases is a relationship that may affect customs pricing.

(1) one person is a director or an employee who is an executive in another person’s business;
(2) one person is a partner for doing business with another person;
(3) one person is an employer or employee of another person;
(4) a person owns, controls, or holds shares with voting rights in another person’s business from Five percent of all shares with voting rights whether directly or indirectly
(5) One person controls another person either directly or indirectly.
(6) Both persons are controlled by a third party, directly or indirectly.
(7) The two persons jointly control the third party, directly or indirectly, or
(8) One person is a member of the same family as another person.

Person with controlling power under (4), (5), (6) and (7) means a person who has legal or de facto powers to veto or direct another person.
imported as the following example. not considered a sale and unable to set customs price by method 1

– Gifts, samples, promotional items provided free of charge
– consignment
– Goods imported by the branch office of the same juristic person
– Goods brought in under a rental, lending contract
– imported items to destroy The importer receives a service fee.
– Items brought in by an intermediary who is not a buyer

Determination of customs prices according to method 2, the transaction value of Identical Goods.

The Customs Department will determine the customs price according to method 2, which is the purchase price of the same item. If the customs price cannot be determined in accordance with

Method 1, the purchase price of identical goods used in determining the customs price shall be the purchase price of goods of identical nature in all respects to the imported goods. be it physical, quality and reputation, and must be produced in the same country as the imported goods. taking into account the cost of insurance Freight costs of goods imported to the customs house where the goods are brought in, the cost of unloading, loading and unloading of goods, and other handling charges related to the transport of goods to the imported customs house.

The purchase price of identical goods used in determining the customs price shall be in accordance with the rules, procedures and conditions as follows:

It is the purchase price of identical goods sold for export to the Kingdom and exported at the same or similar time as those imported.

The words “send out in time the same or at the same time” means an export within a period of 30 days before or after the export of the imported goods. and to check the export date Use the date of issuance of the consignment note as the basis.

It is the purchase price of imported goods that were previously accepted as customs prices.

It is the same trading price and volume as the imported goods.

Sales at the same level of trade means wholesale, retail, etc. if the imported goods are wholesale. Similar items must be wholesale as well. If the imported goods are for retail sale The same items must be retail as well.
Sales in the same volume means the sale of similar quantities in the nature of trading of goods of the same group or type.

It is not a purchase price of goods that include or contain value of services relating to engineering, development, works of art, designs, plans and sketches made in the Kingdom.

In the case where there is no purchase price of identical goods under 2.3, the purchase price of identical goods sold at the same trade level as the imported goods but in different quantities shall be taken. or the same quantity as the imported goods but at different trade levels or the level of trade and the quantity is different from that of the imported which has been received as a customs price in the past, to adjust the price by taking into account the difference in the level of trade or volume, insurance costs, the cost of transportation of goods imported to the customs house, the cost of unloading, loading and unloading, and handle various matters related to the transportation of goods to the customs house where the goods are brought in, by considering the evidence presented by the importer, for example:

– Selling at the same trade level but in different quantities to adjust the price only in terms of quantity
– Selling at different trade levels but in the same volume to adjust the price only on the trade level
– Selling at different trade levels and in different quantities to adjust the price both in terms of trade level and volume
– Goods imported and exported from Singapore The same items are exported from the United States. Prices must be adjusted for distance differences.
– Goods imported and exported from the western United States The same items are exported from the eastern United States. Prices must be adjusted for distance differences.
– Goods imported and exported from Japan by air Similar items are exported from Japan by boat. Prices must be adjusted for different shipping methods.

If the purchase price of an identical item has more than one price Use the lowest selling price of the same item. which is produced by the same manufacturer and the time of export, the level of trade, quantity, terms of payment and delivery, means of transport and any other operations related to trading close to the imported goods. in accordance with the rules prescribed by the Director-General.

Determination of customs prices according to Method 3, the transaction value of Similar Goods

If the customs price cannot be determined in accordance with Method 1 and Method 2, the customs price shall be determined by Method 3, i.e. the purchase price of similar goods at which the purchase price of similar goods used in determining the customs price shall be the purchase price of the similar goods. not the same in all aspects as the imported ones but have the same characteristics or use of materials Made in the same country and perform the same or interchangeable functions in trade, taking into account the quality, reputation and trademark of the goods imported with such goods.

The purchase price of similar goods used in customs pricing shall be in accordance with the rules, procedures and conditions as follows:
It is the purchase price of similar goods that are sold for export to the Kingdom and are exported at the same or similar time as those imported.
The words “send out in time the same or at the same time” means an export within a period of 30 days before or after the export of the imported goods. and to check the export date Use the date of issuance of the consignment note as the basis.
It is the purchase price of imported goods that were previously accepted as customs prices.
It is the same trading price and volume as the imported goods.

Sales at the same level of trade means wholesale, retail, etc. if the imported goods are wholesale. Similar items must be wholesale as well. If the imported goods are for retail sale Similar items must be retail as well.
Sales in the same volume means the sale of similar quantities in the nature of trading of goods of the same group or type.

It is not a purchase price of goods that include or contain value of services relating to engineering, development, works of art, designs, plans and sketches made in the Kingdom.

In the absence of the purchase price of similar goods in accordance with 2.3, the purchase price of similar goods sold at the trade level shall apply. the same as the imported one, but the quantity is different or the same quantity as the imported goods but at different trade levels or the level of trade and the quantity is different from that of the import which has been received as a customs price in the past, to adjust the price by taking into account the difference in the level of trade or volume, insurance costs, the cost of transportation of goods imported to the customs house, the cost of unloading, loading and unloading, and various arrangements related to the transport of goods to the customs house where the goods are imported, by considering the evidence presented by the importer, such as

Selling at the same trade level but in different quantities to adjust the price only in terms of quantity
Selling at different trade levels but in the same volume to adjust the price only on the trade level
Selling at different trade levels and in different quantities to adjust the price both in terms of trade level and volume
Goods imported and exported from Singapore Similar items are exported from the United States. Prices must be adjusted for distance differences.
Goods imported and exported from the western United States Similar items are exported from the eastern United States. Prices must be adjusted for distance differences.
Goods imported and exported from Japan by air Similar items are exported from Japan by boat. Prices must be adjusted for different shipping methods.

If the purchase price of similar goods is more than one price Use the lowest selling price of similar items. which is produced by the same manufacturer and time of export, trade level, quantity, terms of payment and delivery, means of transport and any other processing. related to trading close to imported goods in accordance with the rules prescribed by the Director-General

Customs Price Determination according to Method 4, Deductive Value

If the customs price cannot be determined in accordance with Method 1, the purchase price of imported goods, Method 2, the purchase price of identical goods, and Method 3, the purchase price of similar goods The Customs Department will determine the customs price by method 4, a deduction price, unless the importer requests the customs officer to determine the customs price by using the price calculated before the deduction price and the customs officer has agreed to the request.

The deduction price used in determining the customs price for the imported goods shall be the purchase price per unit of the imported goods sold in the Kingdom in the same picture as the import. by deducting expenses following out

Fees or gratuities paid or agreed to be paid or normal profits and expenses in connection with the sale of such goods in the Kingdom either by comparison with those of the same type or type
Insurance, transportation costs and other expenses in connection with the transportation of such goods in the Kingdom

Other duties and taxes to be paid in the Kingdom due to the importation or sale of such

In the case where there is no purchase price per unit of the imported goods under Clause 2, the purchase price per unit of identical or similar goods, respectively, which has been sold in the Kingdom in the same condition as imported shall be deducted. Expenses under 2.1 – 2.3 out of the purchase price per unit of identical or similar goods, as the case may be.

The selling price per unit of goods imported under Clause 2 or the same or similar goods under Clause 3 shall be the price at which the greatest total quantity was sold at the same time or similar to that of the imported goods. imported In the event that there is no selling price at that time The price that has been sold for the largest total quantity on the first day of the sale of the imported same thing or the like thereof which must not exceed 90 days after the importation of such goods

Using the discount price in accordance with Articles 2 – 4, the Buyer must not have a relationship with the Seller. and is not a material supplier Equipment or services which are used in production for the seller for export to the Kingdom.

In the event that the goods are not sold same thing or the like under Articles 2 – 4, if requested by the importer or the customs officer. Use the purchase price per unit of imported goods that have been subjected to additional processing. by deducting the added value from the said additional process and the expenses under Clause 2.1 – 2.3 from the purchase price of such goods However, the selling price per unit of the imported goods under this clause shall be the price obtained from the sale of such goods in the highest total quantity. The buyer must not have a relationship with the seller.

Determination of customs prices according to Method 5, Computed Value

If the customs price cannot be determined in accordance with Method 1, the purchase price of the imported goods, method 2, the purchase price of identical goods, method 3, the purchase price of similar goods, and method 4, the discounted price, the customs price shall be determined by method 5 price. Calculation, unless the importer requests the customs officer to determine the customs price by using the price calculated before the deductible price and the customs officer has agreed with the request.

The calculated price used in customs pricing shall consist of the sum of the following items:

The cost or value of materials and any preparation or process used in the production of imported which means to include raw material cost Semi-finished raw materials, components or parts, including the cost of procuring raw materials from the source of the manufacturer to the industrial plant. It does not include RECOVERABLE SCRAP OR WASTE, and does not include taxes and duties in the producer country on raw materials that are taxed. The cost of preparation includes direct costs, i.e. labor costs, assembly costs. production machinery and indirect costs, including factory consultants maintenance, overtime, etc.

Profits and general expenses incurred from the sale of the same type or type of imported goods. by other manufacturers to export to the Kingdom

The cost of containers as part of the imported goods

The cost of materials and labor for the packaging of imported goods

The value of materials and equipment for use in the production and sales of imported goods whether directly or indirectly supplied by the purchaser.

Insurance, transportation costs of goods imported to the customs house, the cost of unloading, loading and unloading, and other handling costs. related to the transport of goods imported to the customs house where the goods are imported

Value of engineering, development, artwork, design, drawings and sketches services performed in the Kingdom and necessary for the production of imported goods for the value of such services provided by the manufacturer (if any).

The determination of customs prices according to this method of calculation shall be made on the basis of information. documentary evidence or accounts received from foreign manufacturers or importers on behalf of such manufacturers.

In the event that the importer or the foreign manufacturer is unable to deliver the information documentary evidence or such account within a reasonable time It shall be deemed that customs prices cannot be fixed under this Chapter.

Determination of customs prices according to Method 6, Fall Back Value

If the customs price cannot be determined in accordance with Method 1, Method 2, Method 3, Method 4 and Method 5, the customs price shall be determined by Method 6, the reverse price, with the rules for determining the price as follows:

Determine customs prices in accordance with Method 6, reverse prices, with the following rules and regulations:

The Customs Department will consider the price from the customs price previously received.

Determine the price of imports using Methods 1 to Method 5 in a lenient and reasonable manner.

In the event that the customs price cannot be determined in accordance with Article 2.2, it may be determined by other reasonable means. provided that such an approach shall not be a prohibition of the reverse method and shall be consistent with the principles set out in the Agreement on the Adoption of Article 7 of the 1994 General Agreement on Tariffs and Trade; 7 of the General Agreement on Tariffs and Trade 1994

The reversal of customs prices can also be waived, for example:

– Extend the time specified in each method by 30 days each time, but not more than 1 year in total.
– same thing similar produced from other countries
– The retail price is used as a base for deductions. by deducting expenses appropriately
– Bring information on cost, material value and production obtained from countries other than exporting countries. used as the basis for the calculation method.
– a price structure that consists of raw materials or components including profit and expenses;
– value equal to the intrinsic value of the existing imported goods; or can be searched
– Prices set by experts, experts or committees

Determination of customs prices according to the reverse price method The Customs Department will not determine by using the following items:

– selling price of goods produced and sold in the Kingdom
– Priced system to get a higher price from two prices to choose from.
– the price of goods sold in the domestic market of the goods exported to determine the customs price;
– production costs other than those used in the calculation of prices calculated in accordance with Method 5 for identical or similar articles;
– selling price of imported goods sold for export to countries other than the Kingdom
– minimum customs price, or
– custom or unreal price

Notes on the customs declaration

The importer should verify that Is the price of imported goods that you declare to customs in accordance with the GATT price system? by answering the question of GATT valuation guidelines for importers (Checking whether the product price is in accordance with the GATT price or not) as follows:

1. Do you know how credible you have in expressing yourself? “The price actually paid or payable” of the product. Or do you know the terms of the sale of the product or not, for example in that sale? There are sales discounts, sales obligations, indirect costs. or other additional costs? Brokerage fees or royalties? or the price of the product is true or an approximate price Or are you and your supplier related?

2. How reliable have you prepared or had a method for declaring the price of goods to the customs according to the Ministerial Regulation on Determination and Use of Customs Prices B.E. 2560 (2017) by virtue of Section 5 paragraph one (6) and Section 16 paragraph two of the Customs Act B.E. 2560 (2017)

3. Have you received a customs “ruling” regarding the appraisal of goods? If so, how reliable are you at ensuring that you comply with the decision and inform customs?

4. You have studied the laws and regulations of customs appraisal. Customs Valuation Encyclopedia, a customs publication that outlines valuation practices, court cases and customs rulings to assist you in valuing your products?

5. He discussed with Customs “experts” (e.g. lawyers, accountants customs expert customs consultant) to assist you in evaluating the product price?

6. If you purchase products from related sellers Do you have a way to ensure that You have reported this fact on import. and find reliable measures or methods to ensure that the price Declaration to customs is subject to the test. “Relationships”

7. What reliable measures or methods do you have to ensure that You have reported the costs or expenses associated with legally imported goods. all to customs (e.g. cost of auxiliary materials total commission indirect costs or discounts, royalties, etc.)

8. If you declare the actual trading price (Transaction Value), which you are not the buyer. You have provided evidence that the purchase is a good faith transaction and that the product has a destination for sale in Thailand.

9. Do you have a reliable plan or method to provide import documentation and other supporting information required by customs?