This Advisory Opinion was finalized at the 44th Session of the Technical Committee on Customs Valuation (TCCV) which took place in Brussels from 8 to 12 May 2017.
The instrument, based on a case submitted by Mexico, provides an opinion on a scenario where royalties have been paid by a franchisee to a franchisor for the use of the brands and system connected to the operation of stores under a franchise agreement. The Advisory Opinion concludes that as the payment of royalties in this particular case is not related to the imported goods but to the use of the brands and system of the franchisor in the country of importation for the manufacture and sale of the products bearing the intellectual property of the franchisor, the royalties are not to be included in the Customs value of the imported goods.
Under the WTO Valuation Agreement, certain royalties and licence fees are to be included in the Customs value of imported goods. This is an important and complex aspect of Customs valuation and each case must be examined on its own merits to determine whether or not the royalties and licence fees should be included. The new instrument, available here [es], will be published in the WCO Valuation Compendium, following approval by the WCO Council in July 2017.
DISCLAIMER: THIS TEXT HAS BEEN ADOPTED BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION AND IS SUBJECT TO APPROVAL BY THE WCO COUNCIL