How do you deal with licensed goods, royalties, and licensing rights?

31 May 2022

Many importers use protected logos, brand names, or images on products, such as Disney figures on clothing, bags, or toys. Royalties and licensing rights are payable for these so-called licensed goods. When importing into the EU, these fees may be part of the customs valuation. As such, it is important they are listed on your import declaration correctly. How can you make sure this is done correctly?

List licensed goods on the invoice.

Our declaration department regularly receives invoices listing items that could be subject to licensing rights. It is important to always include a note that states licensed goods are involved, in the description, for example. If you fail to do this, the royalties and licensing rights will unwittingly be omitted from the customs valuation, making the declaration incorrect.

Of course, it could be that you have already made arrangements to submit make declarations and pay import duties in retrospect. If this is the case, we ask you to let us know, so that we can make a note of it on the declaration. As a declarant/importer, it is your responsibility at all times to provide the customs declarant with correct information.

Help with royalties and licensing rights

Royalties and product licensing contracts are often complex. This means it is not always clear to importers whether these are applicable, and the way in which royalties and licensing rights are required to be added to the customs valuation is sometimes complicated.

What’s more, you can be charged for royalties and licensing rights in different ways, so that they are not always easy to allocate to the value of the imported goods in advance. For example, if the value is calculated using a retrospective payment structure or sales numbers. In these situations, you may not be able to determine how much to add for your royalties and licensing rights straight away.

The National Customs Valuation Team can help you with this. We also advise that you contact them if you are in doubt whether royalties and licensing rights apply to you. Do you have any other questions about licensed goods? Our Customs Declaration department would be happy to help – please contact them via the general number (+31) (0)10-7671000.

Appendix: article 136 of the Implementing Regulation (EU)2015-2447 on royalties and licensing rights.