When goods cross borders, assigning them a customs value is a crucial step in determining how much duty and tax should be paid. But what exactly is customs value?

Put simply, Customs Value is the basis on which customs duties and import taxes are calculated. It's usually the price paid or payable for the goods when sold for export to the country of importation - but there’s more to it than just the invoice price.

The most common method is the Transaction Value - the actual price paid, with certain adjustments (like shipping and insurance). But if that can’t be used, there are other methods:

- Transaction value of identical or similar goods

- Deductive value- Computed value

- Fall-back method

✨ Why does it matter? Getting Valuation wrong can lead to delays, disputes, or even penalties. It’s essential to know how to correctly calculate customs value - especially when importing at scale.

At International Trade Institute, we help businesses and trade professionals get clarity on customs procedures, including valuation, classification, and origin rules.Borrowing this image from John O'Driscoll. Thanks John for the fascinating, historical image, a great way to illustrate customs valuation 👏