Transaction Value Method

The Transaction Value Method is the most basic and commonly used method in customs valuation, referring to using the price actually paid or payable for imported goods as the customs value. Its core basis is the true transaction price reached by the buyer and seller, usually reflected in the invoice amount. Usage scenarios: applicable to the vast majority of normal import trade, provided that the transaction complies with the 'arm's length' principle, i.e., the buyer and seller have no special relationship or the special relationship did not affect the price. Precautions: three conditions must be met—the transaction is genuine, the price is determinable, and there are no restrictive conditions; if there are commissions, royalties, assists, or other costs not included in the price, they must be adjusted and added; if the buyer and seller have a special relationship and the price is obviously low, customs may refuse to use this method and instead adopt the identical goods transaction value method, similar goods transaction value method, deductive value method, computed value method, etc. Difference from other terms: the transaction value method emphasizes 'actual transaction', while other valuation methods are alternative methods used only when the transaction value method is not applicable.