Provisional values
When does this change start?
From 1 October, certain importers can register with Customs to declare a provisional value on their import entry. They must first register with Customs, and in most cases be approved before they can use a provisional value.
Who does this change affect?
Importers with goods that are hard to value at the time of importation. For example royalty amounts are based on sales volumes, which often aren’t known at the time of importation, but still need to be factored into the valuation.
What do I have to do if I want to use this?
If you believe you qualify, you will need to register with Customs, and in some cases be approved first, before you can enter a provisional value on your import entry.
What happens to the Uplift programme after 1 October 2018?
The Uplift programme will cease to exist on 1 October 2018. Importers using the Uplift programme will need to register for the provisional values service, and in some cases be approved first, to continue to use variable values on their import entries, without penalties.
How do I register?
You will need to fill out a form.
What form do I need to use?
The forms and guides are available now. If you would like to use provisional values from 1 October 2018, you will need to complete and return the appropriate form to Customs by 20 August.
What happens to the voluntary disclosure scheme after 1 October 2018?
The ability to make voluntary disclosures will remain. However, if an importer is not part of the provisional values scheme, compensatory interest will be charged from the time the import entry was first made if the final value for duty (VFD) is higher than that originally declared.
What happens if an importer is not approved for the provisional values service?
If an importer chooses not to register or is declined to use the provisional values service then they must use the actual value of their goods on the import entry. If there is any discrepancy discovered, compensatory interest will be charged from the time the import entry was first made.
If an importer previously on the Uplift programme starts using the provisional values service what happens to valuation adjustments for the transitional period?
As soon as practically possible, usually just after the importer’s financial year end, the importer will need to make a voluntary disclosure, as they have been doing for Uplift.
Where the Uplift and provisional values service overlap in the same financial period, the voluntary disclosure will be treated as one reconciliation without compensatory interest being charged on the Uplift content. This will be subject to any short payments being paid at the time.
This will be made clear in the provisional values acceptance letter sent to importers.
If I’m approved to use provisional values, will I enter it into Trade Single Window?
Yes, you will complete provisional values entries the same way you currently enter import entries. However, you will use another information code (PVL) in the other information field (OINF).
If you use a third party provided software to complete your entries, you may need to contact your software provider with assistance in lodging an entry with provisional values. We have informed software providers of the changes to Customs’ systems and provided the specification of this change.
More detail on the entry fields and process is provided on page 20 of the Importer Guide – Provisional Values Scheme
What TSW box will I use to enter a provisional value?
Another information code (PVL) has been created to use in the other information field (OINF) to indicate you are submitting an entry with provisional values. If the whole entry (all detail lines) has provisional values, you can put the PVL in the header. If provisional values are being used for only some of the detail lines of your entry, the PVL goes in the OINF field of the specific detail line(s).
More detail on the entry fields and process is provided on page 20 of the Importer Guide – Provisional Values Scheme
When do I need to provide a final value for my imports?
You must provide the final value by the end of your next financial year. This is the 12 months after the end of the financial year in which the provisional values declarations were made. For example, if your financial year end is 31 March 2019, you must complete your final Customs value for all your provisional value estimated by 31 March 2020.
More information about this is found in pages 21-22 of the Importer Guide – Provisional Values Scheme
What process do I follow to provide a final value for my imports?
To provide a final value, you will need to send us:
- a reconciliation letter
- a spreadsheet
- supporting documents for your import declarations.
Your final documents should contain sufficient information for us to validate your final Customs value.
We will assess your information and when accepted, we will mark your provisional value declarations as closed.
More information as well as letter and spreadsheet templates are found on pages 21-23 of the Importer Guide – Provisional Values Scheme
Does every single shipment need a separate provisional value?
Most provisional values approvals will be for ongoing use. In some situations, you can request a one-off approval for high-value or special-purpose imports. A provisional value will be effective from the approval date for use on each shipment for the period that the provisional value is applicable.