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Brief Information on Customs Valuation Methods based on WCO Valuation Act

Value imported goods based on the rules included in the World Trade Organization's Valuation Agreement, which is also referred to as the Customs Valuation Code. This code establishes a fair, uniform and neutral system for valuing goods in accordance with commercial reality, and prohibits the use of arbitrary or fictitious customs values. Its goal is to ensure that the customs value of all goods entering all countries is established using the same rules, and that the valuation of goods is not a barrier to trade.

A value for duty must be declared for all goods imported to the importation country. Regardless of the circumstances of your importation, you must establish a value for duty, also referred to as a customs value, according to the valuation provisions of the Customs Act.
There are six valuation methods:

• transaction value
• transaction value of identical goods
• transaction value of similar goods
• deductive value
• computed value
• residual

You have to use the first of the six methods, the transaction value method, whenever possible to determine the customs value of imported goods. If you cannot establish the value for duty of your imported goods using this first method, you must consider the alternative methods to identify the method that is appropriate.
You have to consider the methods in sequence. However, you can reverse the order of application of the deductive and computed methods if you ask in writing, before you account for your goods.

Methods of Determining Value for Duty.

You have to keep complete records in support of your value for duty declaration.