GlossaryEN1 min readUpdated: Jun 26, 2026
royalty customs value
When an importer pays licence fees or royalties to a brand owner as a condition of selling or using the imported goods, those payments may need to be added to the transaction price for customs purposes.
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Source: https://www.wcoomd.org/en/topics/valuation/overview/what-is-customs-valuation.aspx
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Logistics Concept
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Definition & Explanation
When an importer pays licence fees or royalties to a brand owner as a condition of selling or using the imported goods, those payments may need to be added to the transaction price for customs purposes. Royalty customs value is the customs value, determined under the WTO Customs Valuation Agreement, that incorporates such royalties or licence fees alongside the purchase price. The key test under Article 8 of the Agreement is whether the payment is a condition of sale or use: if it is, it must be declared and included. Customs brokers must document these payments and disclose them at clearance; omissions can lead to duty reassessments and penalties. Royalties for unrelated software licences or post-import services generally fall outside this requirement.
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