Interest Charges in Customs Value

Treatment of Interest Charges in Customs Value of Imported Goods

As per the WCO's Committee on Customs Valuation, The Parties to the Agreement on Implementation of Article VII of the GATT agree as follows:

Charges for interest under a financing arrangement entered into by the buyer and relating to the purchase of imported goods shall not be regarded as part of the Customs value provided that:

1. the charges are distinguished from the price actually paid or payable for the goods;
2. the financing arrangement was made in writing;

where required, the buyer can demonstrate that: - 

• such goods are actually sold at the price declared as the price actually paid or payable, and 
• the claimed rate of interest does not exceed the level for such transactions prevailing in the country where, and at the time when the finance was provided.

This Decision shall apply regardless of whether the finance is provided by the seller, a bank or another natural or legal person.  It shall also apply, if appropriate, where goods are valued under a method other than the transaction value. Each Party shall notify the Committee of the date from which it will apply the Decision.