Advance Valuation Ruling and you: An explanation Of HMRC’s service

HMRC’s Advance Valuation Ruling (AVR) is an optional service introduced this year that helps traders to pay the correct duty on the goods they import.

Despite its name, AVR is a solution to the previously complicated customs valuation process. By streamlining the process for traders and making it easier to determine the value of goods AVR will help to reduce errors and avoid potential disputes with HMRC over customs duties.

This will help to create a more stable and predictable trading environment, which is essential for businesses looking to import goods into the UK.

What does AVR do?

As well as providing clarity on all customs submissions, AVR gives traders who import goods into the UK a legal certainty on the valuation method for their goods for a period of three years.

To access it, traders need both a Government Gateway ID and EORI Number. You will also need 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

Also, you must apply before you import your goods or make any import declarations as decisions cannot be retrospectively.

How do I use it?

You apply through on online service on the Government website. Providing you have a business tax account, sign into that to apply for an AVR 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 AVR using your Government Gateway user ID.

It’s worth mentioning the tool is still being developed as HMRC hope to have a fully enhanced version live by Autumn 2023. This final iteration will include an accessible list of approved AVRs so traders can review already approved scenarios.

Where you can access help

At Far, not only can you leverage our global reach, but also our in-house custom expertise. Our team are well-versed in customs legislation and can support throughout your importer journey.

So if you’re in need of support, why not get in touch with our resident experts via [email protected] today.