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October 22, 2019
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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.

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en, fr, lt
Overview of simplification on Customs valuation in the European Union
09-01-2021

In the EU, the “simplification for the determination of amounts being part of the Customs value of the goods” under the transaction value method allows operators to avoid the burden of a two-step declaration – i.e. a simplified declaration followed by a supplementary declaration – and to finalise Customs valuation declarations without delay in situations where there is no risk for the collection of import duties. Such simplifications are becoming increasingly relevant given the growing number of value elements, such as royalties or commissions, that cannot be quantified at the time of importation.

European Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD)

customs value/valuation
en, fr, lt
Overview of simplification on Customs valuation in the European Union
09-01-2021

In the EU, the “simplification for the determination of amounts being part of the Customs value of the goods” under the transaction value method allows operators to avoid the burden of a two-step declaration – i.e. a simplified declaration followed by a supplementary declaration – and to finalise Customs valuation declarations without delay in situations where there is no risk for the collection of import duties. Such simplifications are becoming increasingly relevant given the growing number of value elements, such as royalties or commissions, that cannot be quantified at the time of importation.

European Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD)

customs value/valuation
en, lt
Focus of the CJEU: exclusive distribution compensation and customs value
06-01-2021

Court of Justice of the European Union (CJEU) took another decision regarding customs valuation and adjustment of transaction value. In this decision CJEU analysed legal importance of compensation paid for the right to exclusively distribute goods. CJEU concluded that such compensation was the condition of sale and thus must be reflected in the customs value of goods. The fact that compensation was agreed on in a separate contract (not in a sale-purchase agreement) and that it was limited in time did not change conclusions of the CJEU. It is yet another signal for the importers to carefully examine all the payments between them and the seller and evaluate their possible influence on customs value of imported goods.

Monika Bielskienė

customs value/valuation
en, lt
Focus of the CJEU: exclusive distribution compensation and customs value
06-01-2021

Court of Justice of the European Union (CJEU) took another decision regarding customs valuation and adjustment of transaction value. In this decision CJEU analysed legal importance of compensation paid for the right to exclusively distribute goods. CJEU concluded that such compensation was the condition of sale and thus must be reflected in the customs value of goods. The fact that compensation was agreed on in a separate contract (not in a sale-purchase agreement) and that it was limited in time did not change conclusions of the CJEU. It is yet another signal for the importers to carefully examine all the payments between them and the seller and evaluate their possible influence on customs value of imported goods.

Monika Bielskienė

customs value/valuation
image en, lt
Basics in customs: commodity code, origin and duties, customs value
20-11-2020

Enrika Naujokė

customs value/valuation
image en, lt
Basics in customs: commodity code, origin and duties, customs value
20-11-2020

Enrika Naujokė

customs value/valuation
en, lt
New version of European Commission‘s Guidance on Customs Valuation – an overview of changes
14-11-2020

On 25 September 2020, the European Commission has published a new version of the Guidance on Customs Valuation. Although this document is not legally binding, it is considered an important tool for the interpretation of the EU customs legislation. The guidance aims to ensure a common understanding between customs and economic operators and to provide a tool to facilitate the correct and harmonized application of customs legislation in the Member States. The guidance is expected to be included in the EU Customs Valuation Compendium in 2021.

Jovita Mikšienė

customs value/valuation
en, lt
New version of European Commission‘s Guidance on Customs Valuation – an overview of changes
14-11-2020

On 25 September 2020, the European Commission has published a new version of the Guidance on Customs Valuation. Although this document is not legally binding, it is considered an important tool for the interpretation of the EU customs legislation. The guidance aims to ensure a common understanding between customs and economic operators and to provide a tool to facilitate the correct and harmonized application of customs legislation in the Member States. The guidance is expected to be included in the EU Customs Valuation Compendium in 2021.

Jovita Mikšienė

customs value/valuation
en, lt
Free of charge software and customs valuation
31-10-2020

Court of Justice of European Union (CJEU) remained with its position that the economic value of software should be added to the transaction value of imported goods, despite the fact that it was designed in the European Union and transferred to the third-country manufacturer free of charge.

Monika Bielskienė

customs value/valuation
en, lt
Free of charge software and customs valuation
31-10-2020

Court of Justice of European Union (CJEU) remained with its position that the economic value of software should be added to the transaction value of imported goods, despite the fact that it was designed in the European Union and transferred to the third-country manufacturer free of charge.

Monika Bielskienė

customs value/valuation
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