The Federal Fiscal Court has ruled that, in accordance with the provisions of Union legislation (in particular Article 71(1)(c) of the Union Customs Code, UCC), royalties can be included in the calculation of the customs value. This is particularly the case where the payment of royalties is a condition for the conclusion of the sales contract or the receipt of the goods. The ruling is based on a broader interpretation of the term „condition of the sales transaction“ and confirms that such fees, which are not directly linked to the seller of the goods, are also relevant if they are paid to third parties (e.g. the licensor).
Practical example:
A company imported goods for which license fees were incurred. The company had not included these fees in the declared customs value calculation. During an audit, the customs authorities determined that these fees must be included in the customs value calculation, as their payment was considered essential for the sale.
The BFH confirmed this position and emphasized that payments made to third parties, provided they are necessary for the transaction, can also be part of the customs value. The BFH rejected the plaintiff's argument that these fees were not linked to the purchase contract as they arose from a separate license agreement with a third party.
Furthermore, the BFH found that the case was not of fundamental importance that would justify an appeal because the relevant legal issues had already been sufficiently clarified. The BFH therefore rejected the appeal against the previous ruling of the Hamburg Fiscal Court. EU legislation provides for a broad interpretation of the term „condition of sale“ (Article 136 of the Implementing Regulation (UCC-IA).