The UK published its Customs Valuation Handbook (“Handbook“) on 25 June 2025, offering a comprehensive update on its guidance for how the customs value should be determined for goods imported into the UK. While not legally binding, it clarifies HM Revenue & Customs’ (“HMRC“) interpretation of the law, bringing it more in line with the type of customs valuation guidance published by the European Commission.This update follows earlier consultations and forms part of HMRC’s broader effort to modernise and consolidate its customs guidance.
The guidance is intended to help importers apply the UK’s customs valuation rules in line with the World Trade Organisation’s (WTO) Customs Valuation Agreement (CVA), as implemented through the Taxation (Cross-border Trade) Act 2018 and the Customs (Import Duty) (EU Exit) Regulations 2018 (CIDEER). It reflects the UK’s continued alignment with international standards and maturation of the post-Brexit customs regime.
The guidance walks through each of the six valuation methods prescribed in UK legislation, in line with the CVA, and how to navigate complex valuation scenarios such as related-party transactions, retrospective price adjustments, and goods supplied free of charge. Importers will now plainly be able to pinpoint the legislative basis for HMRC’s guidance.
In addition to explicit references to UK law, the 2025 update clarifies the interpretation of “sale for export” drawing on WCO Advisory Opinion 1.1. The Handbook includes five detailed examples on which sale to use for the customs value, such as sales during transit and warehouse sales, and highlights restrictions like those for charitable use only. The update offers more guidance on related parties as set out in Regulation 128 CIDEER, along with detailed tests, including on transfer pricing studies. Finally it covers the treatment of air freight, and R&D, exploring different types of royalties and licensing structures with WCO case studies, and tackles contingency, breakage, and sample discounts with examples.
Beyond the methods themselves, the guidance also covers:
- Valuation simplifications – including how to apply for and use simplifications when certain cost elements are unknown at the time of import.
- Advance Valuation Rulings (AVRs) – legally binding decisions that provide certainty on the valuation method to be used.
- Treatment of second-hand, leased, or free-of-charge goods – including how to calculate depreciation or use expert valuations.
- Customs warehousing and valuation adjustments – including how to handle damaged goods, warranty claims, and retrospective price changes.
- Exchange rates and documentation requirements – clarifying how to convert foreign currency values and what evidence HMRC may request.
Additionally, the inclusion of worked examples and case studies is particularly useful for non-standard transactions such as warranty repairs, promotional samples, and goods supplied under leasing arrangements.
This Handbook complements other recent publications of technical handbooks, such as on customs warehousing and customs authorisations. If you have questions about the new customs guidance, please reach out to the team.