Do You Know About Customs Valuation?

 

What is the meaning of transaction value? It is the merchandise's "price paid or payable." The World Trade Organisation established it as a standard practice for calculating ad valorem duties on imported goods.

The valuation system was created in 1947, when the World Trade Organisation was still operating under the General Agreement on Tariffs and Trade, to "promote fairness, neutrality, and uniformity in customs duty assessment, and is used by more than 150 WTO Member countries worldwide."

Transaction Value includes the following components 

These are attributes that should be included in your overall price to determine the value of your transaction when racking up your invoice from the invoice price:

Packing Fees - Fees for packing your merchandise for retail or shipping.

Indirect Payments - These are past debts that the seller is attempting to collect from the buyer and are not directly related to the transaction. Although it may not be directly related to the shipment, this debt would be included in the transaction value.

Assists - These would be the contributions made by the buyer to the seller for the merchandise to be made, such as moulds, tools, dies, or any other materials used in the manufacturing of the merchandise.

Inland freight charges passed on from seller to buyer from overseas locations are referred to as foreign freight inland overseas.

Profits, costs of disposal, and other known information at the time of the transaction between buyer and seller - This would include profits, costs of disposal, and another particular report at the time of purchase among both buyer and seller. 

Not included in transaction value:

Customs valuation and taxes are not included in the transactional value because they are a cost incurred after the product has been imported.

-Purchasing commissions are not included in the transaction value, unlike selling commissions. And many more.

Therefore, professionals should be chosen to guide the customs valuation terms.