Procedure for the declaration of split shipments/partial consignments

You must determine the correct commodity code in the Norwegian Customs Tariff as the goods appearat the time of importation/exportation. The final product of the split shipment shall appear in box No. 44.

Split shipments shall be declared in accordance with the following options:

1. Split shipments must be declared as they appear at the time of importation/exportation:

• This means that the value of the goods must be determined, cf. t Movement of Goods Act Section 6-3 to 6-11. You must find the correct commodity code in the Norwegian Customs Tariff; and you must classify the goods as they appear at the time of importation/exportation. When declaring the goods, a pro forma invoice with reference to agreement/contract of sale may be submitted.
• The final product of which the split shipment is a part,and the agreement/contract number must be stated in box no. 44 under the code DEL, cf. Movement of Goods Regulation Section 4-1-1 (4) and 5-9-1(2).
• Possible adjustments in customs value, Commodity code, procedures etc. in accordance with agreement/contract shall be corrected by the declarant/Customs representative.The declarant or customs representative must make these amendments through a change notificationto TVINN. It is the declarant’s obligation to ensure that all split shipments are correctly declared for the release for free circulation in accordance with the applicable regulatory framework.

2. For split shipments where the customs value has not been finally determined:

• The declarant/ Customs representative may apply with Norwegian Customs in advance for a deferral of final determination of value, cf. Movement of Goods Regulations Section 4-1-3. When this application is approved, the split shipments may be imported with estimated values in accordance withsubmitted pro forma invoices and classification according to the Customs Tariff as they appear at the time of importation.
  
• The Final product of which the split shipment is a part, agreement/contract number and possible case number shall be stated in box 44 under the code DEL, cf. Movement of Goods Regulations Section 4-1-1(4).

Detailed description of customs value in split shipments

Split shipment means consignments that arrive in multiple consignments even though they are part of the same transaction/agreement between the buyer and seller. The consignments cannot be declared in a single consignment.Thus, they must be imported/exported in split or subsequent shipments, either via the same customs office or different customs offices. This may be due to e.g., delivery, transport, or payment reasons.

Movement of Goods Act Section 6-3 states that the customs value shall constitute the transaction value, meaning the price actually paid or payable for the goods when sold for export to Norway. This shall also form the basis for determination of the customs value for split shipments. It is not permitted to use fictitious values (e.g. NOK 1). It is a pre-requisite that the other conditions in the Movement of Goods Act Section 6-3 are met. 

Commentary 6.1 from the Committee on Customs Valuation in the WCO is relevant (Treatment of Split Shipments under Article 1 of the Agreement).

Provided the conditions in legislation are met, the customs value for each consignment shall be based on the price that is actually paid or is payable, cf. Movement of Goods Act Section 6-3. This means an appropriate share of the total payment in accordance with the agreement entered into by the parties. Should the split shipment be subject to a separate invoice, items must be added and deducted from the customs value pursuant to, Movement of Goods Act Section 6-10 and 6-11 appropriately distributed in relation to the total transaction.

When importing large machines or machinery in split shipments, it may be difficult to determine the final customs value on the date of importation due to costs for construction work or clauses pertaining to price adjustment (e.g., in case of transfer pricing). An application for deferral of final determination of value may be submitted pursuant to the Movement of Goods Regulations Section 4-1-3. The provisional determination can be recalculated when the customs value has been finally determined.

In most cases, goods imported in split shipments can be placed in one of the following three categories:

1. Parts of machines and machinery: The goods constitute a complete industrial plant, or a machine, but are divided into multiple shipments because the parts derive from different sources, it is impossible to import them in one consignment or the consignments must be in accordance with the plans for the construction of the plant.

2. Splitting due to the amount of goods makes it impossible or impractical to import all goods in one consignment. It is a prerequisite that this relates to an amount of identical goods to be sold at an agreed price per item. The delivery date may be agreed in advance or be left to the parties at their convenience.

3. Splitting due to geographical distribution. In such cases, a sales agreement is entered into for the purchase of an amount of goods to be shipped in separate split shipments to two or more ports/airports/customs offices or to two or more countries.

Detailed description of classification in split shipments

Pursuant to Customs Duty Act Section 2-2, customs duty shall be calculated in accordance with the customs duty rate that applies on the date a fully completed declaration is received by the customs authorities. In order for this to be possible, the classification of the goods must also be determined at the same time. 

The main rule for the classification of goods is found in the Customs Tariff's General Rule of Interpretation 1. This rule refers to the rules that follow when classification cannot be deferred according to Rule 1.

The General Rule of Interpretation 2 states that if the declared goods appear as a specific product, including if it is incomplete or not assembled, it shall be classified as that product. If the declared goods appear as specified above, they shall be declared as they are, e.g., parts for the machine or construction in question.