Customs Valuation Agreement

The Customs Valuation Agreement is an international framework established by the World Trade Organization (WTO) that sets out rules for determining the value of goods when they cross international borders. This value is important for calculating customs duties and taxes. The agreement promotes fairness and transparency by outlining methods for valuation, prioritizing the transaction value (the price paid for the goods) as the main criterion. This helps ensure that countries apply consistent and equitable practices in trade, reducing disputes and promoting smooth international commerce.