Transaction Value

Transaction Value is the core concept of customs valuation, referring to the price actually paid or payable for the goods when sold for export to the buyer, provided that the buyer and seller are not related or the relationship does not affect the price. It is the first valuation method under the WTO Customs Valuation Agreement, taking precedence over the transaction value of identical goods, similar goods, deductive value, computed value, and fallback method. Usage: When importing and declaring, customs determines the dutiable value based on the transaction value, adding adjustments such as freight and insurance. Notes: If the buyer and seller have a special relationship that affects the price, or there is false declaration or restrictive conditions, customs may reject the transaction value. Difference from invoice price: The invoice price is a transaction document, while the transaction value is the basis for the customs-determined dutiable value and may require adjustments. Relationship with trade terms like FOB, CIF: The transaction value is usually based on FOB or CIF terms but must be adjusted to the designated place of delivery according to customs regulations.