What is the Advance Valuation Ruling Service (AVRS)
The Advance Valuation Ruling Service (AVRS) was launched by HMRC on 27 April 2023 to give importers legal certainty that their chosen customs valuation method is correct.
When you import goods into the UK, you must work out the correct method to use to work out their customs value.
You can apply to HMRC for an Advance Valuation Ruling before you make an import declaration to:
- – check that the valuation method you have identified is correct
- – get a legally backed decision that you can use this method before you make your import declaration
It can take up to 90 days to give you a decision once you’ve applied and your application has been accepted.
An Advance Valuation Ruling is not mandatory and you can still import goods into the UK without one, however having one can help make sure you pay the correct duty on the goods you import.
Valuing goods can be complicated, so if you’re not an importer or clearing agent you may want to get someone to deal with customs for you.
Who can apply for an Advance Valuation Ruling
You can apply if you are:
- – a trader using your own EORI number starting GB
- – an agent acting on behalf of a trader with a business tax account (you will need to add the agent to the account as a team member first)
Before you start the application
You must apply before you import your goods or make any import declarations, as decisions cannot be made retrospectively.
What you need
To apply, you will need:
- – to identify the valuation method you think is best to value your goods
- – a Government Gateway user ID and password (if you do not have one, you can create one when you apply)
- – an EORI number starting with GB
When you apply, you will also need to give us supporting documents relevant to the goods being imported, such as:
- – commercial invoices from overseas suppliers
- – purchase orders
- – copies of previous import entries
- – a breakdown of manufacturers’ costs
- – commercial agreements with suppliers
- – any other relevant documents
HMRC may refuse your application if you are not planning to import your goods or do not give them all the information they need.
Parts of your application may be made public — this may include attachments that are not marked as confidential. If you want information on your application to remain confidential, you must let HMRC know when attaching these documents.
Apply for an Advance Valuation Ruling
You need to complete a separate application for each type of goods that require a decision.
If you have a business tax account
Sign in to your business tax account to apply for an Advance Valuation Ruling using the Government Gateway user ID and password you used to set up the account.
To apply for a ruling, select ‘Get online access to a tax, duty, or scheme’ from the business tax account homepage.
If you do not have a business tax account
You can apply for an Advance Valuation Ruling using your Government Gateway user ID.
After you’ve applied
HMRC will reply to confirm that they have received your application within 30 days.
HMRC will give you a decision on the Advance Valuation Ruling within 90 days of your application being accepted, as well as:
- – the start date of the ruling (valid for up to 3 years, meaning you can use the ruling for any further imports of these goods during this time)
- – a unique reference number that identifies your goods
- – the name and address of the business or person who holds the ruling — this is who has the legal right to use it (decisions are non-transferable)
- – a detailed description of your goods (including any specific marks and numbers) which can be used to easily identify your goods at the frontier
- – an explanation of how we came to our decision
How to use the ruling
- – Tell the person completing your import declaration that your goods have been given an Advance Valuation Ruling.
- – Give them the correct customs valuation method and the Advance Valuation Ruling reference when completing the declaration.
- Declare that you have an Advance Valuation Ruling in the Customs Declaration Service as detailed in UK Trade Tariff: volume 3 for CDS.
Appeal a ruling decision
If you do not agree with the decision, you can request a review by writing to the Advance Valuation Ruling Team. They’ll let you know how to do this in the decision notice they send.
Alternatively, you can appeal directly to the tribunal service, which is independent of HMRC. If you disagree with the outcome of an HMRC review, you can still appeal to the tribunal.
How can MCL Accountants help?
Contact MCL Accountants on 01702 593 029 if you would like further information about the Advance Valuation Ruling Service or if you need any assistance with the preparation and submission of your business accounts or self-assessment tax returns to HMRC.
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Ishan provides financial management, taxation and transactional advice to business entities of all sizes. His expert areas include statutory compliance, business taxation, personal tax & transactional processing and systems. Industry sectors include professional services, retail, hospitality and entertaining & media and advertising services.