Method based on cost subtraction - Method 4

The customs assessment according to method 4 is based onthe unit price of the goods at which the evaluated goods (identical or homogeneous) are sold in the largest batch on the territory of the Russian Federation no later than 90 days from the date of import of the evaluated goods to the participant of the transaction,who is not an interdependent person with the seller.

In order to use the sale price on the domestic market of valued or identical or similar goods as a basis for determining the customs value, this sale must meet the following conditions:

the goods must be sold in the Russian Federation inunchanged state(in the same in which they were imported);
imported goods (identical, homogeneous) must be soldat the same timewith the import of the assessed goods or at a time sufficiently close to the time of their import, but no later than 90 days from the date of import of the assessed goods;
if there are no cases of sale of the evaluated, identical or similar goods in the same condition as they were at the time of import,declarantit can use the unit price of the processed product, with an appropriate adjustment for the value added as a result of processing. However, method 4 cannot be applied to processed goods if, as a result of processing after importation, the goods have lost their properties, as well as if the importedproductafter processing, it has not lost its qualities, but it makes up a very small part of the final product (car radios are imported, which are installed on domestic cars; although radio radios retain their consumer qualities after installation, it is impossible to determine their customs value based on the sale price of the finished car);
the goods and services used for the production and sale of imported goods for export to the Russian Federation must not be directly or indirectly supplied to a foreign participant of the transaction free of charge or at a reduced price;
the first buyer of imported goods on the domestic market of the Russian Federation should not be associated with a Russian participant in a foreign economic transaction (importer of valued, identical or similar goods).

Determination of customs value based oninternal pricesthe product provides for the allocation of those elements from the latter that are characteristic only for the domestic market, that is, those costs that are incurred after the import of the assessed goods into the territory of the Russian Federation and are not subject to inclusion in the customs value.

Part 3 of Article 22 of the Law establishes that the following components are deducted from the price of a unit of goods:

a)expenses for payment of commission fees, ordinary profit margins and general expenses in connection with the sale in the Russian Federation of imported goods of the same class and type;
b)amounts of import customs duties, taxes, fees and other payments payable in the Russian Federation in connection with the import or sale of goods;
c)the usual expenses incurred in the Russian Federation for transportation, insurance, loading and unloading.

Also, in accordance with part 4 of Article 22 of the Law, the value added as a result of assembly or further processing is deducted from the price of the goods, if necessary.

When choosing sales, it is necessary to take into account that

for method 4, the same concepts of identity and uniformity of goods are used, which are defined by Law in Articles 20 and 21;
the interdependence of the parties (in contrast to Article 19 of the Law) is understood as the interdependence between the importer and the buyer in the domestic (Russian) market, however, the same criteria of interdependence defined by part 2 of Article 19 of the Law are used.

The concept"sale of goods in an unchanged condition" means,that operations of a production nature (including assembly), furtherprocessinggoods, etc. are considered as operations that change the condition of the imported goods. Unpacking, simple repacking for the domestic market are not considered as such; natural changes (shrinkage of goods, evaporation for liquids) are also considered as preserving them unchanged.

One of the main problems of applying method 4 is the choice of the price at which the largest aggregated (aggregate) quantity of goods was sold after importation into the country to domestic buyers of the first commercial level, not related to the importer. To determine such a quantity, it is necessary to summarize the data on all sales of goods at a certain price. The largest total number of units of goods sold at one price, and will represent the largest aggregated number of units of goods.

The largest number of units of goods sold at one price in this case is 130. Thus, as a basis for determining the customs value according to method 4, the unit price of the goods for the largest aggregated batch in the amount of $ 180 will be used.

In the event that it turns out that the same batches of goods were sold at different unit prices, the lowest of them will be used as the basis for determining the customs value.

If not the whole lot of goods has been sold, but only part of it, then the decision on the sufficiency of the quantity sold for the application of method 4 should be made individually for each specific case. For an expensive product (equipment), the sale of two or three units may be sufficient, and for the sale, for example, of small spare parts, the sale of 200-300 pieces may be considered insufficient.