Additions in the MVE: what to declare and how to calculate

What are additions and why they matter

Additions are expenses, payments and values that must be added to the price paid or payable to determine the customs value of imported goods. They are listed in Article 65 of the Customs Law and correspond to Article 8 of the WTO Valuation Agreement.

Art. 65 section I: Commissions and brokerage

Selling commissions paid by the importer and brokerage expenses are additions. Buying commissions (paid to your purchasing agent to represent you before the seller) are not additions, but you must prove the distinction.

Art. 65 section II: Assists and supplied materials

This is the most complex section. It includes materials, components, parts, tools, dies, molds, engineering, creation, blueprints and designs that the importer provides to the foreign manufacturer. The value of these elements must be prorated among imported units.

Art. 65 section III: Royalties and license fees

Royalties and license fees are additions ONLY when two conditions are met: (1) the payment is a condition of sale, and (2) the royalties relate to the imported goods. If you can buy the goods without paying the royalty, it is not an addition.

Art. 65 section IV: Resale proceeds

If part of the proceeds from the resale of imported goods reverts directly or indirectly to the seller, that amount is an addition.

How to calculate additions

Calculation depends on the type of addition. For supplied materials, acquisition cost is used. For tools and molds, the value is prorated among produced units. For royalties, the amount actually paid or payable is used.

Camtom identifies additions automatically

Camtom analyzes the commercial invoice, registered contracts and operation history to automatically identify additions applicable to each import. The system calculates amounts, converts to the correct currency and integrates into the MVE Format E2.