On 25 October 2021, the World Customs Organization (WCO) announced that a new instrument of the Royalties and Licence Fees under Article 8.1 (c) of the Customs Valuation Agreement (CVA) had been adopted by the Technical Committee on Customs Valuation (TCCV) at its 53rd session, held from 20 September 2021 to 20 October 2021.
The session was held in a blended format, with 265 delegates from 95 Members and Observers attending the session.
The Advisory Opinion 4.19 adds to the 19 existing instruments that deal with royalties and licence fees and shows how a single royalty paid for the right to use or incorporate a patented imported input in the production of a finished product in the country of importation and the use of a trademark on the finished product is to be treated for customs valuation purposes (customs valuation).
The instruments adopted by the TCCV help to ensure the uniform application and interpretation of the provisions of the WTO CVA and are published in the WCO Customs Valuation Compendium.