Valuation for customs

Customs valuation determines the value on which import duty and taxes are assessed. The WTO Agreement on Customs Valuation, derived from GATT Article VII, establishes the transaction value, the price actually paid or payable for the goods, as the primary method, with five fallback methods applied in strict sequence when it cannot be used. Adjustments add elements such as freight, insurance, royalties, and assists, depending on the Incoterm and national rules, which is why the chosen delivery term affects the dutiable base.