Customs valuation is the process of determining the official value of imported goods for customs purposes. Customs authorities use this value to calculate import duties, taxes, and certain fees. The customs value is often based on the transaction value, or the price paid or payable for the goods, with required adjustments such as assists, royalties, commissions, packing costs, or transport and insurance depending on local customs rules. Accurate valuation is essential for duty calculation, compliance, and avoiding penalties.
Customs valuation is the process CBP uses to determine the dutiable value of imported goods. The primary method is transaction value, which is the price actually paid or payable for goods sold for export to the United States.
Six Valuation Methods (in order of preference)
- Transaction value: price paid or payable, including assists
- Transaction value of identical goods
- Transaction value of similar goods
- Deductive value: based on resale price in the U.S.
- Computed value: based on cost of production
- Fall-back method: flexible application of the above methods
Additions to Transaction Value
- Selling commissions
- Value of assists: free materials, tooling, or designs provided by the buyer to the seller
- Royalties and license fees
- Proceeds of subsequent resale
- Packing costs
For related logistics context, see glossary entries on Commercial Invoice, Customs Entry, CBP, and First Sale Valuation.
