In Focus 01 / 18

RECENT DEVELOPMENTS IN ALBANIA

• Customs Value of Goods

On 23.01.2018, the Minister of Finance and Economy approved Instruction no. 3, dated 23.01.2018 "On valuation of goods for customs purposes" (the "Instruction"), entering into force upon its publishing in the Official Journal (i.e. 26.01.2018).

The customs valuation is the procedure of determining the value of the goods and services related to them for customs purposes, which is the basis for calculation and payment of ad valorem customs duties (including VAT).

Transaction Value Method

Pursuant to law no. 102/2014 "Customs Code of the Republic of Albania" (the "Customs Code"), there are six methods for assessing the value of goods. The first and main method is the "Transaction Value" method, according to which the value of goods corresponds to the price actually paid or payable for the goods when sold for export to the customs territory of Albania, adjusted, where necessary. The paid or payable price is the full payment carried out (or that shall be carried out) by the buyer to the seller (or a third person for the benefit of the seller) and includes all payments made or to be made as a condition of sale of the imported goods.

However, the transaction value shall apply provided that all of the following conditions are fulfilled:

there are no restrictions as to the disposal or use of the goods by the buyer, other than any of the following: restrictions imposed or required by a law or by the public authorities in Albania; limitations of the geographical area in which the goods may be resold; restrictions which do not substantially affect the customs value of the goods; the sale or price is not subject to some condition or consideration for which a value cannot be determined with respect to the goods being valued; no part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made; the buyer and seller are not related, or the relationship did not influence the price. The "Transaction Value" is used as the valuation method when the main documentation submitted for this purpose is complete and from the reviewing of the circumstances under which the transaction is carried out and the risk classification, there are no reasonable doubts that the declared transaction value is different from the total amount paid or payable.

The documentation required for performing the...

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