Computed Value Method

The Computed Value Method is a method for determining the customs value in customs valuation, typically used as a last resort. It refers to a price calculated based on the costs of raw materials, components, labor, transportation, etc., used in producing the imported goods, plus profit and general expenses (such as selling, administrative, and other expenses). This method is mainly applicable when there is a special relationship between the buyer and seller, and the transaction value method, identical or similar goods value method, and deductive value method cannot be used. Usage scenarios include when customs questions the declared price and no other reference price is available. Precautions: costs must be accurately calculated, and profit and expenses must conform to industry practices; different countries' customs may have different regulations on the scope of costs. Differences from other terms: unlike the deductive value method (which works backward from the selling price), the computed value method accumulates costs forward; unlike the transaction value method (the actual price paid), it is based on a constructed value rather than an actual transaction.