Customs Valuation

Customs valuation is the process used by customs authorities to determine the value of imported goods for tariff and tax purposes. It ensures that the right amount of duties is paid based on the true worth of the goods. This valuation is typically based on the transaction price—the actual price paid or payable for the goods when bought for export—plus certain adjustments for things like shipping costs or royalties. Accurate valuation helps governments to collect fair duties and prevents undervaluation or overvaluation, ensuring a balanced and fair trade system.