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During the latest session of the Technical Committee on Customs Valuation (“TCCV”), the TCCV adopted Advisory Opinion 4.19, a new instrument on royalties and licence fees under Article 8.1(c) of the Customs Valuation Agreement (“CVA”).

The new Opinion advises on 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 how the use of a trademark on the finished product is to be treated for customs valuation purposes.

The full text of the opinion is not yet available, since it still has to be approved by the WCO Counsel. The Opinion will also need to be reported to the WTO Committee on Customs Valuation before it will be fully published in the WCO Customs Valuation Compendium.

Note that – once published – the Opinion is not legally binding on customs administrations. Advisory Opinions, however, serve as useful guidance for the interpretation of the CVA. Furthermore, Advisory Opinions and other instruments adopted by the TCCV may enhance the uniform application of the CVA.


Yassine El Bojaddaini is an associate within the EMEA Customs Practice. He has ample experience on advising and representing multinationals in customs and tax related matters including restructurings, litigation and supply chain optimization.


Johanna is a Trainee Solicitor at Baker McKenzie London office.

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