According to the method 5 considered the production costs of the imported goods and on this basis calculated the cost. To determine the customs value for this method requires information on the costs of production of goods being valued, which is available only outside Russia.
Typically, the manufacturer of the goods being valued is outside the jurisdiction of the Russian Federation, and therefore the use of this method in practice is limited to cases in which the participants in the transaction are related persons and the manufacturer is ready to submit to customs authorities of the Russian Federation the necessary data on the costs of production.
These data should be based on the information relating to the production of the goods being valued and presented either by the manufacturer or on his behalf. The information should be based on its commercial records, provided that they comply with the norms and principles of accounting used in the country of origin.
В customs value of goods according to Art. 23 Act shall be included the following components.
a)The cost of materials and expenses incurred by the manufacturer in the production of the goods being valued.
Under the materials in this case means:
materials and supplies;
components and parts;
the cost of delivering the above components of the place to get farm.
The cost of materials does not include internal taxes countries of production, if they are subject to return when exporting finished products.
Production costs should include:
All costs associated with the direct costs of labor in the production of the imported goods (including the costs of the support staff);
all the costs of assembly operations (if used instead of processing);
the cost of computer processing (machine tool operations, etc.) associated with the production of the imported goods;
indirect costs, such as repairs and maintenance of equipment, buildings and structures, etc.
The materials and costs in accordance with part 1 Art. 19 Act should also be considered to be included in the customs value of the following elements:
packing expenses, including the cost of packaging, packaging, as well as work on the package;
value of goods and services provided free or at a reduced price to Russian foreign manufacturer party to the transaction in connection with the export of goods to be valued in the Russian Federation;
engineering and design study and other similar types of work, if they are produced outside of Russia.
b) The amount of profit and the amount of the total costs, typical for sale for export to the Russian Federation of goods of the same kind of producers, including the cost of shipping, handling, insurance and other costs to the point of entry into the customs territory of the Russian Federation.
Total costs in this case are the direct and indirect costs of production and sales in Russia, which were not included in the costs mentioned above (§ а).
The amount for profit and general expenses as shall be determined on the basis of information provided by the manufacturer, and to be determined in accordance with generally accepted accounting principles.
at)Profits are usually obtained by the exporter supplies to Russia of such goods.
As a confirmation of the customs value declared by the declarant using the 5 method, it is necessary to have a corresponding documentary confirmation of all listed elements. If the information is provided by the manufacturer, it can only be confirmed in the country in which it agrees to such confirmation. This imposes a strict limitation on the use of the addition method. If unconfirmed data is submitted to the customs authority, this should be considered as unsubstantiated data, not necessarily reflecting the actual state of affairs.
All of these make use of the method in practice 5 extremely rare.