Customs Valuation

Customs valuation refers to the process by which customs authorities, in accordance with legal provisions, determine the dutiable value of imported goods for the purpose of levying tariffs and import-related taxes. Its core is to establish the 'transaction value' of the goods, usually based on the price actually paid or payable, and adjusted in accordance with the WTO Valuation Agreement and national laws. Use cases include import declaration, tariff calculation, trade statistics, and anti-dumping investigations. Precautions: companies must declare prices truthfully and retain complete transaction documents; if customs questions the declared price, it may initiate valuation procedures using alternative methods such as identical goods, similar goods, deductive value, computed value, or reasonable means. Unlike 'invoice price,' customs valuation may be higher than the invoice amount due to adjustments for commissions, royalties, freight, etc.; unlike 'dutiable value,' the dutiable value is the final result of customs valuation. Foreign trade practitioners should ensure the declared price meets the 'transaction value' conditions to avoid penalties or delays caused by under-declaration or omission.