October 22, 2019
en lt ru
Transaction value method

Photo by Job Savelsberg on Unsplash

The customs value of imported goods is determined mainly for the purposes of applying ad valorem rates of customs duties. It constitutes the taxable basis for customs duties. It is also an essential element for compiling trade statistics, monitoring quantitative restrictions, applying tariff preferences, and collecting national taxes.

Today, almost all customs administrations of the current 164 World Trade Organisation (WTO) Members value imported goods in terms of the provisions of the WTO Agreement on Customs Valuation (adopted in 1994). This Agreement establishes a customs valuation system that primarily bases the customs value on the transaction value of imported goods, which is the price actually paid or payable for the goods when sold for export to the country of importation, plus, certain adjustments of costs and charges.

Currently more than 90% of world trade is valued on the basis of the transaction value method which provides more predictability, uniformity and transparency for the business community.

The explanation prepared by WCO Academy, the provider of online courses on the topic: Valuation concepts and transaction value, Advanced valuation methods, Transfer Pricing.

Comments ()

en, lt
Baltic Master case in the CJEU: once again about related persons and the use of customs valuation IS
31-07-2022

On 13.06.2022, the Court of Justice of the European Union (CJEU) issued a decision in the Baltic Master case (C-599/20) on two relatively unrelated issues. The first, whether customs must establish an objective legal relationship between the buyer and the seller in order to consider them as related persons. The second, whether customs can rely on the value of a single comparable transaction found on the national customs valuation information system (IS), denying the acceptance of the declared value of the goods (air conditioning units). In this article, we discuss interpretations provided by the CJEU; and we look forward for the national verdict of the Supreme Administrative Court of Lithuania (SACL).

Monika Bielskienė

value of goods
en, lt
Baltic Master case in the CJEU: once again about related persons and the use of customs valuation IS
31-07-2022

On 13.06.2022, the Court of Justice of the European Union (CJEU) issued a decision in the Baltic Master case (C-599/20) on two relatively unrelated issues. The first, whether customs must establish an objective legal relationship between the buyer and the seller in order to consider them as related persons. The second, whether customs can rely on the value of a single comparable transaction found on the national customs valuation information system (IS), denying the acceptance of the declared value of the goods (air conditioning units). In this article, we discuss interpretations provided by the CJEU; and we look forward for the national verdict of the Supreme Administrative Court of Lithuania (SACL).

Monika Bielskienė

value of goods
lt
Ekspertės nuomonė Baltic Master bylos klausimu
31-07-2022

Malonu, kad buvau pakviesta pasidalinti savo asmenine ekspertine nuomone Baltic Master bylos klausimu. Esu tikra, kad bylos eigą akylai seka ne tik leidinio redakcinė kolegija, bet ir Lietuvos bei ES ir ne ES šalių muitinių atstovai, teisininkai, tarptautinio verslo specialistai, t. y., visi muitinės praktika besidomintys profesionalai.

Milda Stravinskė

value of goods
lt
Ekspertės nuomonė Baltic Master bylos klausimu
31-07-2022

Malonu, kad buvau pakviesta pasidalinti savo asmenine ekspertine nuomone Baltic Master bylos klausimu. Esu tikra, kad bylos eigą akylai seka ne tik leidinio redakcinė kolegija, bet ir Lietuvos bei ES ir ne ES šalių muitinių atstovai, teisininkai, tarptautinio verslo specialistai, t. y., visi muitinės praktika besidomintys profesionalai.

Milda Stravinskė

value of goods
en, lt
CJEU guidelines on the selection of identical or similar goods for determining the customs value
20-07-2022

Customs administration shall exercise due care in analysing the facts, gathering information and evidence for the use of each of the alternative methods for determining the customs value. This includes the duty of the customs authorities to consult all the information sources and databases available to them. Are customs authorities obliged to check information systems maintained by the EU? May identical or similar imports (which have not been challenged) of the same trader be excluded? What is the period, in which identical or similar imports are considered to be ‘made at the same or around the same time’? We look at the CJEU's answers to these questions.

Georgi Goranov

value of goods
en, lt
CJEU guidelines on the selection of identical or similar goods for determining the customs value
20-07-2022

Customs administration shall exercise due care in analysing the facts, gathering information and evidence for the use of each of the alternative methods for determining the customs value. This includes the duty of the customs authorities to consult all the information sources and databases available to them. Are customs authorities obliged to check information systems maintained by the EU? May identical or similar imports (which have not been challenged) of the same trader be excluded? What is the period, in which identical or similar imports are considered to be ‘made at the same or around the same time’? We look at the CJEU's answers to these questions.

Georgi Goranov

value of goods
en
Mission possible: how the WTO Valuation Agreement strikes a balance between trade facilitation and customs regulation
17-07-2022

Customs valuation is one of the largest challenges in international trade. That is why the rules of customs valuation are set out in an international treaty. On the one hand, this is aimed at harmonizing the valuation rules, while on the other hand, it is aimed at protecting economic operators from the arbitrariness of the authorities and, ultimately, at helping traders. Does it really work in practice, and does it serve both public and private interests in international trade? In the article, the peculiarities of customs valuation are highlighted, which are especially important to consider for those who deal with developing and least-developed countries.

Rizwan Mahmood

value of goods
en
Mission possible: how the WTO Valuation Agreement strikes a balance between trade facilitation and customs regulation
17-07-2022

Customs valuation is one of the largest challenges in international trade. That is why the rules of customs valuation are set out in an international treaty. On the one hand, this is aimed at harmonizing the valuation rules, while on the other hand, it is aimed at protecting economic operators from the arbitrariness of the authorities and, ultimately, at helping traders. Does it really work in practice, and does it serve both public and private interests in international trade? In the article, the peculiarities of customs valuation are highlighted, which are especially important to consider for those who deal with developing and least-developed countries.

Rizwan Mahmood

value of goods
image en, lt
Customs valuation: What should all stakeholders in the company know about it?
23-06-2022

Bertrand Rager

value of goods
image en, lt
Customs valuation: What should all stakeholders in the company know about it?
23-06-2022

Bertrand Rager

value of goods
Forgot password?

* Mandatory fields

By signing up you agree to the Terms of Use and Privacy Policy

Password reset

Check your e-mail, we sent you a link to reset your password.


Login with Google Login with LinkedIn

Contact us

Thank you for report
Your email can be used only to contact you for problem details. It won't be used for advertising purposes
Maximum file size 6mb
File is too large