Dutiable Value

Dutiable Value is the base price used by customs to assess import duties, value-added tax, consumption tax, and other taxes and fees. According to the Measures of the Customs of the People's Republic of China for the Assessment of the Dutiable Value of Imported and Exported Goods, the dutiable value of imported goods is usually based on the transaction price and must be adjusted to conform to the CIF (Cost, Insurance, and Freight) conditions prescribed by customs, i.e., including the price of the goods, transport and related charges incurred before unloading at the place of arrival within the territory, and insurance premiums. Use cases include import declaration, tariff calculation, trade cost budgeting, and transfer pricing compliance. Precautions: Enterprises must declare truthfully; if the declared price is obviously low without justified reasons, customs has the right to assess the value; different trade terms (such as FOB, CFR) need to be converted to CIF price; royalties, assistance fees, etc. should be included. It differs from 'customs dutiable value for tariff', which specifically refers to the basis for tariff assessment, while dutiable value is also used for VAT and consumption tax; it differs from 'transaction price' in that the transaction price may not include freight and insurance, and must be adjusted to become the dutiable value.