Value of Goods

Value of Goods is a core term in international trade, referring to the value of the traded goods themselves, usually calculated based on the transaction price (such as FOB, CIF, etc.), and used for customs declaration, insurance, tax calculation, and settlement. Its usage scenarios include: filling out import and export customs declaration forms, verifying letter of credit amounts, determining insurance coverage amounts, and serving as the basis for calculating tariffs and value-added tax. Precautions: Under different trade terms, the composition of the value of goods varies (e.g., FOB does not include freight and insurance, while CIF does), and it must be distinguished from invoice value and dutiable value; customs may adjust the declared value through valuation, and under-declaration or over-declaration may both trigger compliance risks. The difference from 'invoice value' is that invoice value may include adjustments such as commissions and discounts, while value of goods focuses more on the goods themselves; the difference from 'dutiable value' is that dutiable value may include adjustments such as freight and insurance. Foreign trade practitioners should accurately understand the value clauses agreed in the contract, ensure consistency of documents, and avoid customs clearance delays or fines.