Judicial principles and studies
Transaction Price, Customs Value, Foreign Invoices and Storage
A brief summary of principles for determining customs value in relation to the transaction price, treatment of company branches, storage issues, and requirements for bonds and scope of proceedings.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
- The customs-declared value corresponds to the actual transaction price (the price paid or payable at sale) and excludes internal operating costs and transport expenses. - Multiple branches of an importing company are treated as a single legal person for import/export transactions; receipt of goods at one branch does not create a new seller. - Artificially increasing the transaction price by attributing operating expenses between branches is not permissible and conflicts with Article (28) of the Customs Law and settled judicial practice. - Storing imported goods in the importer’s private warehouses within a special economic zone for administrative reasons does not, by itself, indicate an intention to place the goods for local consumption or to re-export, especially when not stored in the official storage area. - A bond submitted in a customs case must remain effective throughout the trial period until a final, conclusive decision is issued. - The scope of the case is defined by the relief sought in the statement of claim; the court must not decide on matters not brought before it.
Summary
These principles emphasize that customs value should reflect the true transaction price without adding internal operating or transport costs, and that branch structure does not create separate sellers for customs purposes. Inflating prices via inter-branch charges is impermissible under Article (28) and established case law. Administrative storage in company warehouses inside a special economic zone is not by itself conclusive evidence of intent to place goods on the local market or to re-export. Bonds must remain valid until the litigation concludes, and the court’s adjudication is limited to the requests in the claim. Note: This is a general educational summary and not a judicial text or legal advice.
Practical significance
- In customs procedures, the declared value should be the genuine transaction price excluding internal operating and transport costs. - Transactions among company branches are treated as internal dealings of one legal entity; receipt at a branch does not alter the seller’s legal identity. - Administrative storage in private warehouses within a special economic zone should not be interpreted automatically as intent to introduce goods into the domestic market or to re-export them. - Ensure any bond submitted remains in force throughout the judicial process until a final decision is issued. - Courts are confined to ruling on the relief requested in the statement of claim and may not rule on unsubmitted issues.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.