What aspect does "transaction value" consider when determining customs value?

The concept of "transaction value" refers specifically to the price actually paid or payable for the goods when sold for export to the country of importation. This principle is the primary method used to determine customs value in many jurisdictions, as it directly reflects the monetary consideration exchanged between the buyer and seller.

Transaction value is preferred under international trade agreements because it is clear, objective, and based on the actual sale price, making it a reliable basis for assessing duties and taxes. Additionally, it may include adjustments for certain costs related to the transaction, such as packing costs and certain royalties or license fees.

Other options, while potentially related to the overall valuation of goods, do not directly define transaction value. Shipping costs, depreciation, and retail values serve different purposes and are used in other valuation methods or considerations but do not represent the transaction value itself. Thus, the correct identification of transaction value as the price paid or payable ensures an accurate and fair assessment of customs value.