Before adjusting customs values for level and quantity, read Valuing imported goods using Method 2 or Valuing imported goods using Method 3.
Same commercial level and quantity
You’re a wholesaler who imports 1,700 articles where Method 1 cannot be used.
You can produce a customs entry for 1,700 articles that are either identical or similar goods imported by a wholesaler. This entry has been accepted by UK customs under Method 1. The customs value is 6 units per article including cost, insurance and freight (CIF).
As the quantity and commercial level are the same, no adjustment is needed. The value of 6 units per article CIF is acceptable as the customs value under Method 2 or 3.
Same commercial level, different quantity — no adjustment needed
You’re a wholesaler who imports 2,000 articles where Method 1 cannot be used.
You can produce a customs entry for 1,700 articles that are either identical or similar goods imported by a wholesaler. This entry has been accepted by UK customs under Method 1. The customs value is 6 units per article CIF.
The supplier of the identical or similar goods, sells at 6 units per article CIF to wholesalers regardless of the quantity ordered.
As the commercial level is the same and the quantity ordered does not affect the price, no adjustment is needed. The value of 6 units per article CIF is acceptable as the customs value under Methods 2 or 3.
Same commercial level, different quantity — adjustment needed
You’re a wholesaler who imports 1,700 articles where Method 1 cannot be used.
You can produce a customs entry for 2,300 articles that are either identical or similar goods imported by a wholesaler. This entry has been accepted by UK customs under Method 1. The customs value is 4.75 units per article CIF.
The supplier of the identical or similar goods sells at different prices depending on the quantity ordered.
The price list shows that for:
- less than 2,000 articles, the price is 5 units
- 2,000 articles or more, the price is 4.75 units
As the commercial level is the same, no adjustment is needed for level. However, an adjustment is needed for quantity. The price list shows that the price of the 1,700 articles is 5 units per article. This means that the value of the identical or similar goods must be increased by 0.25 units per article. The value of 5 units per article CIF is acceptable as the customs value under Methods 2 or 3.
Different commercial level but the same quantity
You’re a wholesaler who imports 2,800 articles where Method 1 cannot be used.
You can produce a customs entry for 2,800 articles that are either identical or similar goods imported by a retailer. This entry has been accepted by UK customs under Method 1. The customs value is 2.5 units per article CIF.
The supplier of the identical or similar goods sells at different prices depending on the commercial level of the customer. The price list shows that for wholesalers a 20% discount is given. Retailers pay the list price.
As the quantity is the same no adjustment is required for quantity.
An adjustment is needed however, for commercial level.
The price list shows that a wholesaler receives 20% discount. The value of the identical or similar goods must be reduced in line with this discount.
2.5 × 20% = 0.5
2.5 – 0.5 = 2
The value of 2 units per article CIF is acceptable as the customs value under Methods 2 or 3.
Different commercial level and quantity — no adjustment needed
You’re a wholesaler who imports 1,500 articles where Method 1 cannot be used.
You can produce a customs entry for 1,200 articles that are either identical or similar goods imported by a retailer. This entry has been accepted by UK customs under Method 1. The customs value is 6 units per article CIF.
The supplier of the identical or similar goods sells at 6 units per article CIF regardless of the quantity ordered or the commercial level of the customer.
As the price is not affected by either the commercial level or the quantity ordered, no adjustment is needed. The value of 6 units per article CIF is acceptable as the customs value under Methods 2 or 3.
Different commercial level and quantity — adjustment is needed
You’re a wholesaler who imports 2,500 articles where Method 1 cannot be used.
You can produce a customs entry for 1,500 articles of identical or similar goods imported by a retailer. This entry has been accepted by UK customs under Method 1. The customs value is 2.5 units per article CIF.
The supplier of the identical or similar goods sells at different prices depending on the quantity ordered. A 20% discount is also given to wholesalers.
The price list shows that for:
- less than 2,000 articles, the price is 2.5 units
- 2,000 articles or more, the price is 2 units
An adjustment is needed for quantity.
The price list shows that the price of 2,500 articles is 2 units per article. The value of the identical or similar goods must be reduced by 0.5 units per article.
Also, an adjustment is needed for commercial level.
As the wholesaler receives a 20% discount so the value of the identical or similar goods (which has already been adjusted for quantity — 2 units per article) must now be reduced in line with this discount.
2.0 × 20% = 0.4
2.0 – 0.4 = 1.6
The value of 1.6 units per article CIF is acceptable as the customs value under Methods 2 or 3.
Before adjusting customs values for level and quantity, read Valuing imported goods using Method 2 or Valuing imported goods using Method 3.
Same commercial level and quantity
You’re a wholesaler who imports 1,700 articles where Method 1 cannot be used.
You can produce a customs entry for 1,700 articles that are either identical or similar goods imported by a wholesaler. This entry has been accepted by UK customs under Method 1. The customs value is 6 units per article including cost, insurance and freight (CIF).
As the quantity and commercial level are the same, no adjustment is needed. The value of 6 units per article CIF is acceptable as the customs value under Method 2 or 3.
Same commercial level, different quantity — no adjustment needed
You’re a wholesaler who imports 2,000 articles where Method 1 cannot be used.
You can produce a customs entry for 1,700 articles that are either identical or similar goods imported by a wholesaler. This entry has been accepted by UK customs under Method 1. The customs value is 6 units per article CIF.
The supplier of the identical or similar goods, sells at 6 units per article CIF to wholesalers regardless of the quantity ordered.
As the commercial level is the same and the quantity ordered does not affect the price, no adjustment is needed. The value of 6 units per article CIF is acceptable as the customs value under Methods 2 or 3.
Same commercial level, different quantity — adjustment needed
You’re a wholesaler who imports 1,700 articles where Method 1 cannot be used.
You can produce a customs entry for 2,300 articles that are either identical or similar goods imported by a wholesaler. This entry has been accepted by UK customs under Method 1. The customs value is 4.75 units per article CIF.
The supplier of the identical or similar goods sells at different prices depending on the quantity ordered.
The price list shows that for:
- less than 2,000 articles, the price is 5 units
- 2,000 articles or more, the price is 4.75 units
As the commercial level is the same, no adjustment is needed for level. However, an adjustment is needed for quantity. The price list shows that the price of the 1,700 articles is 5 units per article. This means that the value of the identical or similar goods must be increased by 0.25 units per article. The value of 5 units per article CIF is acceptable as the customs value under Methods 2 or 3.
Different commercial level but the same quantity
You’re a wholesaler who imports 2,800 articles where Method 1 cannot be used.
You can produce a customs entry for 2,800 articles that are either identical or similar goods imported by a retailer. This entry has been accepted by UK customs under Method 1. The customs value is 2.5 units per article CIF.
The supplier of the identical or similar goods sells at different prices depending on the commercial level of the customer. The price list shows that for wholesalers a 20% discount is given. Retailers pay the list price.
As the quantity is the same no adjustment is required for quantity.
An adjustment is needed however, for commercial level.
The price list shows that a wholesaler receives 20% discount. The value of the identical or similar goods must be reduced in line with this discount.
2.5 × 20% = 0.5
2.5 – 0.5 = 2
The value of 2 units per article CIF is acceptable as the customs value under Methods 2 or 3.
Different commercial level and quantity — no adjustment needed
You’re a wholesaler who imports 1,500 articles where Method 1 cannot be used.
You can produce a customs entry for 1,200 articles that are either identical or similar goods imported by a retailer. This entry has been accepted by UK customs under Method 1. The customs value is 6 units per article CIF.
The supplier of the identical or similar goods sells at 6 units per article CIF regardless of the quantity ordered or the commercial level of the customer.
As the price is not affected by either the commercial level or the quantity ordered, no adjustment is needed. The value of 6 units per article CIF is acceptable as the customs value under Methods 2 or 3.
Different commercial level and quantity — adjustment is needed
You’re a wholesaler who imports 2,500 articles where Method 1 cannot be used.
You can produce a customs entry for 1,500 articles of identical or similar goods imported by a retailer. This entry has been accepted by UK customs under Method 1. The customs value is 2.5 units per article CIF.
The supplier of the identical or similar goods sells at different prices depending on the quantity ordered. A 20% discount is also given to wholesalers.
The price list shows that for:
- less than 2,000 articles, the price is 2.5 units
- 2,000 articles or more, the price is 2 units
An adjustment is needed for quantity.
The price list shows that the price of 2,500 articles is 2 units per article. The value of the identical or similar goods must be reduced by 0.5 units per article.
Also, an adjustment is needed for commercial level.
As the wholesaler receives a 20% discount so the value of the identical or similar goods (which has already been adjusted for quantity — 2 units per article) must now be reduced in line with this discount.
2.0 × 20% = 0.4
2.0 – 0.4 = 1.6
The value of 1.6 units per article CIF is acceptable as the customs value under Methods 2 or 3.
