Royalties and license fees
Payments for the use of patents, trademarks or copyrights which may need to be added to the customs value.
Royalties and license fees (royalties)
Royalties and license fees are payments made by the buyer for the use of intellectual property rights (patents, trademarks, copyrights, know-how) related to imported goods.
Conditions for inclusion in the customs value
Fees must be added to the customs value if they relate to the imported goods and their payment constitutes a condition of sale.
Analysis criteria
To determine whether a royalty should be included, one must analyze the terms of the license agreement, the relationship between the license and the imported merchandise, and the relationship between the seller and the licensor.
Frequent cases
Trademark royalties, patent rights, software licenses integrated into a product and technological know-how fees are often affected.
Complexity
Royalty valuation is one of the most complex areas of customs valuation. A prior opinion regarding value may be requested from the customs authorities to secure processing.