Guidance: Excluding interest charges from the customs value

When to exclude the interest charges

Interest charges can be excluded from the customs value if you import goods and they’re paid for under a financing arrangement, as long as the following provisions apply:

• the charges are shown separately from the price actually paid or to be paid for the goods on the documentation accompanying the entry to free circulation, for example on an invoice or valuation declaration
• the financing arrangement is in writing

These provisions apply to methods 1 to 6.

Evidence required to exclude the interest charges

You must be able to show HMRC that:

• the goods have been sold at the price declared, in this instance the price paid or to be paid (net of the interest charge)
• the rate of interest you have claimed is the same as the rate used under the finance arrangement in the relevant country

We may also ask you for further evidence to support any claim to exclude the interest charge from the customs value, for example:

• a copy of the finance agreement
• a copy of the contract of sale of the goods if it contains the financing clause
• information to show that the claimed rate of interest is not excessive