CUSTOMS VALUATION 1

Sequential Application

Transaction Value Fallback Method

METHOD 1 Transaction Value METHOD 6
Deductive Value
of Similar Goods METHOD 4

METHOD 3

01 03 04
06

02 05
Transaction Value
Computed Value
Of Identical Goods
METHOD 5
METHOD 2

Created by: Diomari Estor

 TRANSACTION VALUE 2

Method 1

DEFINITION
the price actually paid
or payable for the

1
goods when sold for
export to the country
of importation
SUB CONDITION
Where the buyer and the seller
are related, transaction value
Transaction Value can still be accepted if:
The importer demonstrates that
– Articles 1 & 8, WVA
the transaction value closely
– Section 701, CMTA
approximates any of the TEST
VALUES ascertained at or
about the same time in respect
of sale to unrelated buyers in
the importing country. (only for
comparison purposes)
MAIN CONDITION
a. No restrictions as to disposition
or use of the goods (x: LGS)
b. No condition for which value
cannot be determined
c. No proceeds of any subsequent
resale will accrue to the seller
d. The buyer and seller are not
related, where they are related,
it has no influenced to price.
SUB1 CONDITION
A. Dutiable factors
– CCPARPLUHTIA
B. Non-dutiable factors
– IBPDP

Created by: Diomari Estor

 TRANSACTION VALUE 3

Method 1

Commissions & Brokerage

Container Packing

Royalties and License Fees Assists

DUTIABLE
FACTORS
Loading, Unloading, Handling Proceeds

Transport Insurance

Advance payments

Created by: Diomari Estor

 TRANSACTION VALUE 4

Method 1

Non-Dutiable
Factors

Ta M Po
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xe th
e
ar th Fr
e ei st
t h e c Im s i ket i g -i
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i
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i o t d s t rt a or g c or co
t er es y s i
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In arg Bu is m re p o u
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at
m y c in co n s io
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D is tro un th co in n
co h t r e tr e u nt u nt
rig y ry ry

For deferred
payment

Created by: Diomari Estor

 TRANSACTION VALUE
Where no such sale is found, the transaction value of
identical goods SOLD AT A DIFFERENT COMMERCIAL
LEVEL and/or IN DIFFERENT QUANTITIES, adjusted to
take account of differences attributable to commercial
level and/or to quantity,
SUB
CONDITION
Transaction value of identical goods in a sale AT THE
SAME COMMERCIAL LEVEL and IN SUBSTANTIALLY
THE SAME QUANTITY as the goods being valued
5
Method 2
"identical goods" means goods which are the same in all
respects, including physical characteristics, quality and
reputation.
Transaction value of identical goods sold for export to the
DEFINITION same country of importation and exported at or about the
same time as the goods being valued.
To Definition:
(i) goods shall not be regarded as "identical
goods" or unless they were produced in the
IDENTICAL same country as the goods being valued;
GOODS NOTES (ii) goods produced by a different person shall
be taken into account ONLY when there are
no identical goods, as the case may be,
produced by the same person as the goods
being valued.
To Condition:
(1) Where the ADJUSTMENT costs and charges referred to in
MAIN are included in the transaction value, an adjustment shall be
CONDITION made to take account of significant differences
(2) If more than one transaction value of identical goods is
found, the lowest such value shall be used to determine the
customs value of the imported goods.
Created by: Diomari Estor
 TRANSACTION VALUE
Where no such sale is found, the transaction value of
similar goods SOLD AT A DIFFERENT COMMERCIAL
LEVEL and/or IN DIFFERENT QUANTITIES, adjusted to
take account of differences attributable to commercial
level and/or to quantity,
SUB
CONDITION
Transaction value of similar goods in a sale AT THE SAME
COMMERCIAL LEVEL and IN SUBSTANTIALLY THE
SAME QUANTITY as the goods being valued
6
Method 3
"similar goods" means goods which, although not alike in all
respects, have like characteristics and like component
materials which enable them to perform the same functions
and to be commercially interchangeable.
DEFINITION Transaction value of similar goods sold for export to the same
country of importation and exported at or about the same
time as the goods being valued.
To Definition:
(i) goods shall not be regarded as "similar
SIMILAR goods" or unless they were produced in the
GOODS NOTES same country as the goods being valued;
(ii) goods produced by a different person shall
be taken into account ONLY when there are
no similar goods, as the case may be,
produced by the same person as the goods
being valued.
To Condition:
MAIN (1) Where the ADJUSTMENT costs and charges referred to in
CONDITION are included in the transaction value, an adjustment shall be
made to take account of significant differences
(2) If more than one transaction value of similar goods is
found, the lowest such value shall be used to determine the
customs value of the imported goods.
Created by: Diomari Estor
 Deductive & Computed 7

Value
The importer may request
the reversed sequential

4 5
application of Methods 4 and 5.

Deductive Value Computed Value

The customs value of the imported goods under this method shall
be based on the unit price at which the imported goods or
identical or similar imported goods are so sold in the greatest
aggregate quantity, at or about the time of the importation of the
goods being valued, to persons who are not related to the persons
from whom they buy such goods, subject to certain deductions.
The customs value under this method is determined on the basis of
the cost of production of the goods being valued, plus an amount for
profit and general expenses usually reflected in sales from the
country of exportation to the country of importation, subject to
certain deductions.

Created by: Diomari Estor

 Fallback Method 8

Method 6

Fallback Method
The customs value shall be determined using
reasonable means consistent with the
principles and general provisions of this
Agreement and of Article VII of GATT 1994
and on the basis of data available in the
country of importation.

Created by: Diomari Estor

 9
CLOSING

INSIGHTS
Q&A

Created by: Diomari Estor