How is "Customs Value" determined for imported goods?

The determination of "Customs Value" for imported goods is primarily based on the transaction value. This method considers the price actually paid or payable for the goods when sold for export to the country of importation, and includes certain adjustments such as transportation costs, insurance, and handling fees that are incurred up to the port of importation.

Using the transaction value is a standardized approach recognized under the World Trade Organization’s Valuation Agreement, making it the preferred method for customs valuation. It provides a clear and objective basis for valuing goods in a way that reflects real market transactions. Other methods may be utilized when transaction value cannot be used, but they are generally considered less straightforward or more complex.