- ECJ Rulings on Transaction Value Determination: On October 30, 2025, the European Court of Justice (ECJ) delivered two conflicting rulings regarding the determination of transaction value for customs purposes in cases C-500/24 (Massimo Dutti) and C-348/24 (Logista), both addressing sales that occurred before the goods were released for free circulation.
- Case Details and Outcomes: In Logista, the ECJ allowed the first sale price to be used for customs valuation, recognizing the potential for goods to be subject to various customs provisions while under customs warehousing. Conversely, in Massimo Dutti, the court ruled that the first sale could not be considered as a sale for export, emphasizing the need for proof that the goods’ commercial destination was determined at the time of the first sale.
- Implications for Customs Valuation: The differing conclusions from the ECJ highlight uncertainties in proving that a sale qualifies as an export for customs valuation. Taxable persons are advised to improve documentation regarding their supply chains and commercial destinations to ensure compliance with customs valuation rules, as mere physical presence of goods in the customs territory may not suffice.
Source KMLZ
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