Regulation 123 Method 4 valuation – other than goods to which regulation 124 appliesC1I1

“Method 4 valuation” means, subject to paragraph (2), the valuation of chargeable goods presented to Customs on import which is determined by the following steps.

Paragraph (1) does not apply to goods to which regulation 124 applies.

Step 1: identify whether or not—

and proceed to step 2.

Step 2: if—

Step 3: identify the earliest sale and exclude any sale where the buyer and seller of the goods are related persons and—

Step 4: exclude any sale where the quantity sold is insufficient to give a representative quantity in order to determine a unit price and—

Step 5: include and exclude, as the case may be, as elements of the sale such of the specified matters which are not already taken into account as elements of the sale and proceed to step 6.

Step 6: use the total sale value obtained by step 5 to determine the unit price of the goods and apply that unit price to all of the chargeable goods as the value of the goods which applies immediately before F5discharge of those goods from the free-circulation procedure.

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Step 7: repeat step 1 as if the reference to “in the condition they are imported” were instead a reference to “that have been processed”, but only if the value of the processing carried out to the goods can be determined.

Where step 5 applies after the application of F8step 7, the amount of the value of the processing carried out to the goods is to be deducted in identifying the unit price of the sold goods.